Moore Electric has sales of $3,800,000. Variable costs are $2,130,000 and controllable fixed costs are $782,000. The companys average operating assets are $5,000,000. If the company decreases their fixed and variable costs by 5%, what will their new ROI be?

a. 20.67%

b. 19.89%

c. 17.76%

d. 18.54%