Acua Leather Goods De Magistris Fashion Company, based in New York City, imports leather coats from Acura Leather Goods, a reliable and longtime supplier based in Buenos Aires, Argentina. Payment is in Argentine pesos. When the peso lost its parity with the U.S. dollar in January 2002, it collapsed in value to Ps4.0/5 by October 2002. The outlook was for a further decline in the paso's value. Since both De Magistris and Acuia wanted to continue their longtime relationship, they agreed on a risk sharing arrangement. As long as the spot rate on the date of an invoice is between Ps3.5/5 and Ps4.5/5, De Magistris will pay based on the spot rate. If the exchange rate falls outside this range, they will share the difference equally with Acura Leather Goods The risk-sharing agreement will last for six months, at which time the exchange rate limits will be reevaluated. De Magistris contracts to import leather coats from Acua for Ps8,000,000 or $2,000,000 at the current spot rate of Ps40/$ during the next six months a. If the exchange rate changes immediately to P16.0/$, what will be the dollar cost of six months of imports to De Magistris? b. At Ps6.0/$, what will be the peso export sales of Acura Leather Goods to De Magistris Fashion Company? .. If the exchange rate changes immediately to Pu6.01$, what will be the dollar cost of six months of imports to DeMagistris? (Round to the nearest dollar.)