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!

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