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20. Sinclair Manufacturing and Boswell Brothers Inc. are both involved in the production of brick for the homebuilding industry. Their financial information is as follows:

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20. Sinclair Manufacturing and Boswell Brothers Inc. are both involved in the production of brick for the homebuilding industry. Their financial information is as follows: Capital Structure Sinclair Boswell Debt @ 11%.. $ 0 Common stock, $10 per share 900,000 600,000 $ 1,500,000 Total. $ 1,500,000 $ 1,500,000 150,000 Common shares. 60,000 Operating Plan Sales (55,000 units at $20 each). $ 1,100,000 Less: Variable costs. 550,000 $ 1,100,000 880,000 ($16 per unit) 0 ($10 per unit) Fixed costs. 305,000 Earnings before interest and taxes (EBIT). $ 220,000 $ 245,000 a. If you combine Sinclair's capital structure with Boswell's operating plan, what is the degree of combined leverage? (Round to two places to the right of the decimal point.) b. If you combine Boswell's capital structure with Sinclair's operating plan, what is the degree of combined leverage? c. Explain why you got the results you did in part b. d. In part b, if sales double, by what percentage will EPS increase

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