Nancy Brown Owns an American Company That Sells Music Cassettes

Nancy Brown owns an American company that sells music cassettes to Mexican outlets. On December 10, X1, she sold tapes to Music of Mexico for a price of 16,000 pesos, due in 60 days. The foreign currency exchange rates on specific dates are as follows:

-Refer to the above data. Which of the following is not true regarding the above sales transaction to Music of Mexico?

A) Brown recognizes a loss on fluctuation of foreign currency in the amount of $4.65 in X1.
B) Brown recognizes a gain on fluctuation of foreign currency in the amount of $4.80 in X2.
C) Brown has incurred an overall loss of $1.60 on fluctuation of foreign currency in the period from December 10, X1 to February 8, X2.
D) Brown could have avoided any loss due to fluctuations in foreign currency by setting the sales price of the cassettes in terms of U.S. dollars instead of pesos.