Santiago Pirolta has accepted the Managing Director position for Vitro de Mexico's U.S. operations. Vitro is a Mexico-based manufacturer of flat and custom glass products. Much of its U.S. sales are based on a variety of bottle products, both mass market (e.g., glass bottles for soft drinks and beer) as well as specialty products (high-end cosmetic bottles with rare metal coloring and quality). He will live and work in the United States (Dallas, Texas) and wishes to be paid in US dollars. Vitro has agreed that his base salary of USD350,000 will be paid in U.S. dollars, but Vitro wishes to tie his annual performance bonus to the Mexican peso value of U.S. sales since Vitro consolidates all final results for reporting to stockholders in Mexican pesos (MXN).

Santiago, however, is a bit uncertain on having his bonus based on the Mexican peso values of U.S. sales. As a close friend and colleague, what advice would you give him based on your completion of the table below?

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Vitro's U.S. Sales (millions of USD) USD 820 USD 842 USD 845 USD 860 Percent Change Annual Avg Rate MINI USD MXN 12.80 MXN 13.30 MXN 12.70 MXN 13.40 Vitro's U.S. Sales (millions of MXN) MXN 10,496 MXN 11,199 MXN 10,732 MXN 11,524 Percent Year 2011 2012 2013 2014 Change 2.7% 0.4% 1 .8% 67% -4.2% 7.4%