Hughes Printing and Publishing has sales of $1,350,000. Its variable costs are $597,000, fixed costs are $318,000, and total assets are $3,000,000. Hughes found a new paper supplier that charged 0.5 cents less per 100 sheets of paper, effectively reducing its variable costs by 7%. Based on this, Hughes change in ROI would be a:

Select one:

a. 1.1% increase

b. 2.1% increase

c. 1.4% increase

d. 1.4% decrease