ABC Inc. sells canvas tents for $50 each and has variable costs of $35 per unit. Fixed costs amount to $400,000 and the company's tax rate is 25%. Sales for 2023 amounted to 60,000 tents. The company has $8 mil of equity and $4 mil worth of bonds with a coupon rate of 4%. The current yield on the bonds is 6%

Required: a. Prepare the company's income statement (4 marks) b. Calculate the company's degree of operating leverage (2 marks) c. Calculate the company's degree of financial leverage (2 marks) d. Calculate the company's degree of combined leverage (2 marks) e. Given the degree of combined leverage calculated in part d. Comment on the effect of a 30% increase in sales. (2 marks) f. Interest rates are expected to increase significantly within the next month. Advise management on the implications of this for the company and steps that should be taken under these circumstances. (4 marks)