Acua Leather Goods. DeMagistris Fashion Company, based in New York City, imports leather coats from Acua 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/\$ by October 2002 . The outlook was for a further decline in the peso's value. Since both DeMagistris and Acua 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 Ps 3.5/$ and Ps4.5/\$, DeMagistris will pay based on the spot rate. If the exchange rate falls outside this range, they will share the difference equally with Acua Leather Goods. The risk-sharing agreement will last for six months, at which time the exchange rate limits will be reevaluated. DeMagistris contracts to import leather coats from Acua for Ps8,000,000 or $2,000,000 at the current spot rate of Ps4.0/\$ during the next six months. a. If the exchange rate changes immediately to Ps6.0/\$, what will be the dollar cost of six months of imports to DeMagistris? b. At Ps6.0/\$, what will be the peso export sales of Acua Leather Goods to DeMagistris Fashion Company? a. If the exchange rate changes immediately to Ps6.0/\$, what will be the dollar cost of six months of imports to DeMagistris? $ (Round to the nearest dollar.)