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Han Saved Help Save emework CH Sinclair Manufacturing and Boswell Brothers Inc. are both involved in the production of brick for the homebuilding industry. Their
Han Saved Help Save emework CH Sinclair Manufacturing and Boswell Brothers Inc. are both involved in the production of brick for the homebuilding industry. Their financial information is as follows: Sinclair Boswell Capital structure Debt 120 Common stock, $10 per share Total Common shares $1,140,000 760.000 $1,900,000 76,000 $1,900,000 $1,900.000 190,000 Operating plan: Sales 159.000 units at $25 each) Variable sota Yixed cost Earnings before interest and taxes (BIT) $1,475,000 1,062,000 $1,475,000 700,000 309,000 450,000 413,000 The variable costs for Sinclair are $18 per unit compared to $12 per unit for Boswell a. If you combine Sinclair's capital structure with Boswell's operating plan, what is the degree of combined leverage? (Round your answer to 2 decimal places.) Degree of combined loverage b. If you combine Boswell's capital structure with Sinclair's operating plan, what is the degree of combined leverage? (Round your answer to the nearest whole number Degree of combined leverage
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