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ABC Co. is a U.S. firm that has a subsidiary in Russia that produces light...

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Accounting

ABC Co. is a U.S. firm that has a subsidiary in Russia that produces light fixtures and sells them to Germany, denominated in Euros. Its subsidiary pays all of its expenses, including the cost of goods sold, in U.S. dollars. Russian currency is pegged to the U.S. dollar. If Euro appreciates against the U.S. dollar, the Russian's subsidiary's revenue will ____, and its expenses will ____.

increase; decrease

decrease; increase

increase; remain unchanged

decrease; remain unchanged

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