Last Year Urbana Corp

Last year Urbana Corp.had $197, 500 of assets, $307, 500 of sales, $19, 575 of net income, and a debt-to-total-assets ratio of 37.5%.The new CFO believes a new computer program will enable it to reduce costs and thus raise net income to $33, 000.Assets, sales, and the debt ratio would not be affected.By how much would the cost reduction improve the ROE?

A) 9.32%
B) 9.82%
C) 10.33%
D) 10.88%
E) 11.42%