Check my work Problem 15.3A Exchange Rates and Performance Evaluation (LO15-4) A U.S.-based company. Global Products Inc., has wholly owned subsidiaries across the world. Global Products Inc. sells products linked to major holidays in each country. The president and board members of Global Products Inc. believe that the managers of their wholly owned country-level subsidiaries are best motivated and rewarded with both annual salaries and annual bonuses. The bonuses are calculated as a predetermined percentage of pretax annual income. Seora Larza, the president of Global Products of Mexico, has worked hard this year to make her Mexican subsidiary profitable. She is looking forward to receiving her annual bonus, which is calculated as a predetermined percentage (15 percent) of this year's pretax annual income earned by Global Products of Mexico. A condensed income statement for Global Products of Mexico for the most recent year is as follows (amounts in thousands of pesos). Sales Expenses Pretax Income MXN 18,5ee 16,7ee MXN 1, 8ee The U.S. headquarters financial group translates each of its wholly owned subsidiary's results into U.S. dollars for evaluation. Alter translating the Mexican pesos income statement into U.S. dollars, the condensed income statement for Global Products of Mexico follows (amounts in thousands of dollars) Check my Sales Expenses Pretax Income US $ 7,800 9,300 US $(1,500) Required: a-1. Calculate the bonus amount based on (1) the Mexican peso-based Pretax Income and (2) the U.S. dollar-based Pretax Income. a-2. Translate the peso-based bonus to U.S. dollars using a current exchange rate in Exhibit 15-7 b. Calculate the average exchange rate used to translate the Mexican pesos income statement into the US dollar statement for the categories: (1) Sales and (2) Expenses. (Round your answers to 5 decimal places.) MXN a-1. Bonus on mexican peso-based Pretax Income Bonus US dollar-based Pretax Income a-2. U.S. dollars b. Average exchange rate for sales pesos Average exchange rate for expenses pesos EXHIBIT 15-7 U.S. Dollar Equivalents for Five Foreign Currencies Country/Region Britain Europe Japan Mexico India Currency Pound (5) Euro () Yen (4 Peso ($) Rupee (RS) Exchange Rate (in dollars) $1.4135 1.1168 0.008843 0.0570 0.01496 Exchange Rate (Per dollars) 0.7075 0.8955 113.09 17.5388 66.829 "Many European countries, such as Austria Belgium, Finland, France, Germany Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, and Spain, are using the euro