Sanders Siding produces and sells two productsaluminum and vinyl.

Sanders Siding produces and sells two products—aluminum and vinyl. Each of these products is made in a dedicated manufacturing facility, and the product line managers are evaluated based on the product line's return on investment. The following data is from the most recent year of operations.

                             Aluminum       Vinyl

Sales                   $4,000,000       $3,000,000

Variable costs       1,800,000         1,800,000

Direct fixed costs   1,500,000        900,000

Average assets        2,000,000     1,200,000

Both product line managers would like to improve their respective returns on investment, and each manager has a different idea about how to accomplish this. If the vinyl product line manager was able to reduce variable cost per unit by 8%, what would be the new operating income? What would be the new return on investment?