A firm has sales of R $7500000,$ variable costs of R $4200000$ and fixed costs of R $600000.$ It has a debt of R $4500000$ at $9\%$ and equity of R $5500000$ which have been invested in assets totalling R $10000000.$

Required:

What is the firm's Return on Capital employed? $(6$ Marks$)$

What is the asset turnover ratio of the firm? If the industry's asset turnover ratio is $3,$ interpret the firm$$s ratio in its comparison. $(4$ Marks$)$

What are the operating, financial and combined leverages of the firm? $(10$ Marks$)$