Please show the calculations for the answer provided in the excel sheet (i.e how are formulas sued and how are the steps followed).

Problem 2 Pucini's Risk-Sharing Pucini Leather, based in New York City, imports leather coats from Boselli 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 Pucini and Boselli 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/$ and Ps4.5/$ Pucini will pay based on the spot rate. If the exchange rate falls outside this range they will share the difference equally with Boselli Leather Goods. The risk-sharing agreement will last for six months, at which time the exchange rate limits will be reevaluated. Pucini Fashionwear contracts to import leather coats from Boselli for Ps8,000,000 or $2,000,000 at the current spot rate of Ps4.0/$ during the next six months. If the exchange rate changes immediately to Ps6.00/$, what will be the dollar cost of 6 months of imports to Pucini? Bottom 3.50 Top 4.50 The allowable range of exchange rates is (Ps/$) Outside of this range the trading partners will share the extra risk equally. New exchange rate (Ps/$) Allowable exchange rate (Ps/$) Difference to be shared (Ps/$) Pucinii's share Boselli's share 6.00 4.50 1.50 0.75 0.75 Therefore, Pucini will use the following effective exchange rate after risk-sharing: Top of range Pucini's share Effective total of risk-sharing 4.50 0.75 5.25 Assuming that 6 months of imports will still be (Ps) Effective exchange rate for Pucini (Ps/$) Pucini's cost in US dollars 8,000,000 5.25 $1,523,809.52 However, the lower cost of importing might lead to higher Pucini sales and therefore a higher import total than Ps 8 million