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Last year Mason Inc. had a total assets turnover of 2 . 7 5 and an equity multiplier or leverage ratio of 1 . 9

Last year Mason Inc. had a total assets turnover of 2.75 and an equity multiplier or leverage ratio of 1.95. Its sales were $225,000 and its net income was $9,549. The CFO believes that the company could have operated more efficiently, lowered its costs, and increased its net income by $6,300 without changing its sales, assets, or capital structure. Had it cut costs and increased its net income in this amount, by how much would the ROE have changed? Please calculate the difference between the New ROE% and the Old ROE%

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