Accessories Inc. sells its handbags for $50 each and has variable costs of $30 per unit. Fixed costs amount to $800,000 and the company's tax rate is 25%. Sales for 2021 amounted to 60,000 handbags. The company has $8 mil of equity and $4 mil worth of rate of 5%. 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 20% increase in sales. (2 marks) f. Interest rates have been increasing steadily over the past 3 months. Advise management on the implications of this for the company. (4 marks)