Kappa Manufacturing and Lamda Inc. are both involved in the production of tile for the home-building industry. Their financial information is as follows: Debt @ 10% Common stock, $10 per share Common shares Sales (63,000 units at $15 each) Less: Variable costs Fixed costs Earnings before interest and taxes (EBIT) DCL X Capital Structure X Operating Plan % Kappa $1,380,000 920,000 c. This part of the question is not part of your Connect assignment. d. In part b, if sales double, by what percentage will EPS increase? EPS will increase by $2,300,000 92,000 $945,000 756,000 ($12 per unit) 0 $189,000 a. If you combine Kappa's capital structure with Lamda's operating plan, what is the DCL? (Round the final answer to 2 decimal places.) DCL b. If you combine Lamda's capital structure with Kappa's operating plan, what is the DCL? (Round the final answer to 2 decimal places.) Lamda 0 $2,300,000 $2,300,000 230,000 $945,000 378,000 ($6 per unit) 313,000 $254,000

Kappa Manufacturing and Lamda inc, are both involved in the production of tile for the home-bulding industry Their financial information is as follows: a. If you combine Kappa's capital structure with Lamda's operatng plan, what is the DCL (Round the final answer to 2 decimal places.) DCL. x b. If you cambine Lamda's copital structure with Kappa's operating plan, what is the DCL? (Round the final answer to 2 decimal places.) DCL x c. This part of the question is not part of your Connect assignment. d. In part b. if sales double, by what percentage will EPS increase? EPS will increase by %