Chartered Financial Analyst Level 2
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Copacabana SA is the Brazilian subsidiary of a US corporation and its results are translated into USD using the current rate method. In recent years, the Brazilian real has generally depreciated against the US dollar. Does the translation process affect Copacabana's reported gross profit margin?
A
A No
B
B Yes, after translation the gross profit margin is lower than it was before translation
C
C Yes, after translation the gross profit margin is higher than it was before translation