Please show formulas and final answers in order of the blue boxes, please show all work and answer all four questions - A, B, A, B.

a. If the exchange rate changes immediately to Ps6.00/$, what will be the dollar cost of 6 months of imports to DeMagistris?b. At Ps6.00/$, what will be the peso export sales in Acua Leather Goods to DeMagistris Fashion Company?a. If the exchange rate changes immediately to Ps6.00/$, what will be the dollar cost of 6 months of imports to Pucini?b. At Ps6.00/$, what will be the peso export sales in Acua to DeMagistris? DeMagistris Fashion Company, based in New York City, imports leather coats from Acuria 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 Ps 4.0/$ by October 2002. The outlook was for a further decline in the peso's value. Since both DeMagistris and Acuria 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/S and Ps4.5/S 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 Acuria for Ps 8,000,000 or $2,000,000 at the current spot rate of Ps4.0/S a. If the exchange rate changes immediately to Ps 6.00/5, what will be the dollar cost of 6 months of imports to b. At Ps 6.00/$, what will be the peso export sales in Acura Leather Goods to DeMagistris Fashion Company? a. If the exchange rate changes immediately to Ps6.00/$, what will be the dollar cost of 6 months of imports to Pucini? The allowable range of exchange rates is (Ps/S) Outside of this range the trading partners will share the extra risk equally. Therefore, DeMagistris will use the following effective exchange rate after risk-sharing: b. At Ps 6.00/, what will be the peso export sales in Aca to DeMagistris