AirPro, Inc. is a small company that manufactures evaporator coils in New Mexico. business had been domestic, and all their customers were within driving distance to their manufacturing facility. Recently, AirPro forayed into international markets with a sale to King Kool, a Brazilian air conditioning company. Most of AirPro's The recent sale to King Kool, while modest in size at 12,000 coils, had been a significant financial boost to AirPro, Inc. The order had used up some raw-materials inventory that Smith had considered reselling at a loss a few months before the King Kool order. Furthermore, the company had been running well under capacity and the order was easily accommodated within the production schedule. The purpose of the meeting was to finalize details on a new order from King Kool that was to be 50% larger than the original order. Also, payment for the earlier King Kool order had just been received and Smith was looking forward to paying down some of the balance on the firm's line of credit. Jane Doe was a sales manager and needed to meet with CEO John Smith to discuss the recent results of the sale to King Kool. As Smith sat down with Doe, he could tell immediately that he was in for bad news. It came quickly. Doe pointed out that since the King Kool order was denominated in Brazilian real (BRL), the payment from King Kool had to be converted into U.S. dollars (US$) at the current exchange rate. Given exchange rate changes since the time AirPro, Inc. and King Kool had agreed on a price, the value of the payment was substantially lower than anticipated. More disappointing was the fact that King Kool was unwilling to consider a change in the price for the follow-on order. Translated into dollars, therefore, the new order would not be as profitable as the original order had initially appeared. In fact, it would not even be as profitable as the original order had turned out to be due to a rise in some of AirPro, Inc.' Costs. This deal was initially thought to be financially good for AirPro, Inc.. Although, after factoring in exchange rates, this was not the case. In the original order, King Kool was charged 104,338.30 BRL for their purchase. After the exchange of currency from BRL to U.S. dollars, AirPro, Inc. was estimated to receive $48,371.24 (104,338.30 brought in $55,967.06 less from their deal with King Kool than was expected. 4636). This means that AirPro, Inc. 1. What recommendation would you give to John Smith to handle this situation? What advice would you give him for the future international sales? 2. Using the Patton model, discuss the degree of risk (quadrant), and what is the best course of action to mitigate Smith's risk for this situation and in the future