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I DO NOT NEED ANSWERED I NEED IT TO BE EXPLAINED. The answers are already displayed but no math behind it? Can someone please help

I DO NOT NEED ANSWERED I NEED IT TO BE EXPLAINED.

The answers are already displayed but no math behind it? Can someone please help me understand why and how the changes were made? Thank you!

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Assume your business has the following characteristics represented by the strategic profit model below. (all numbers are in S millions) Sales 100 Gross Margin If you were able to reduce your fixed costs by $5 million, but kept your Sales, Asset base and other operating costs the same, what would be the impact on ROE?% s 45 Cost of Goods Sold 7.5 s 55 Net p Variable Expenses Net Profi? Margin Tota 30 Expe s 15 s 35 Fixed Expenses Sales s 100 15 Net Profi 15 Net Sales 30 s 20 7.5 Return on Equity (R Financial Return on Leverage Assets (RO Income Taxes 20% 2 10% Sales s 100 Net ProfitIotal AssetsNet Profit Equity Asset Turnover Equity Total Assets Current assets Accounts Receivable Total Assets s 25 s 50 Net Sales Total Assets Fixed s 25

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