You own a small record label. You sell CDs through your Web site for $15, including shipping and handling. You get an offer from someone who owns a record store in Germany who wants to buy your CDs at...

You own a small record label. You sell CDs through your Web site for $15, including shipping and handling. You get an offer from someone who owns a record store in Germany who wants to buy your CDs at $10 each and sell them for €30. He says his profit from each sale would be €12 and he will split it with you. Assuming the exchange rate between the dollar and the euro is $1 = €2:

a. How much profit would you get from the sale of each CD in the German store?

b. How much is that profit in dollars?

c. Is this a good business opportunity for you? Why or why not?

d. If the FX rate between the dollar and the euro falls to $1 = €1, would this still be a good business idea for you? Why or why not?