The reference rate for a contract is CAD/INR = 57.08. An Indian exporter charges $200 CAD per unit of product with a gross margin of 25% and has agreed to being paid net 30. At the time of payment, the exchange rate has moved to CAD/INR = 55. The effect on the exporter is:

A) Gross margin increases by 2854 INR and profit margin % increases to 26 %

B) Gross margin decreases by 2854 INR and profit margin % increases to 26%

C) Gross margin increases by 416 INR and profit margin % decreases to 22%

D) Gross margin decreases by 416 INR and profit margin % decreases to 22%

E) None of the above