Sinclair Manufacturing and Boswell Brothers Inc. are both involved in the production of tile for the home-building industry. Their financial information is as follows:

Capital Structure
	Sinclair			Boswell
Debt @ 10%		$1,560,000			0
Common stock, $10 per share		1,040,000			$2,600,000
		$2,600,000			$2,600,000
Common shares		104,000			260,000
Operating Plan
Sales (66,000 units at $15 each)		$990,000			$990,000
Less: Variable costs		792,000			396,000
		($12 per unit)			($6 per unit)
Fixed costs		0			316,000
Earnings before interest and taxes (EBIT)		$198,000			$278,000

a. If you combine Sinclairs capital structure with Boswells operating plan, what is the DCL? (Round the final answer to 2 decimal places.)

DCL X

b. If you combine Boswells capital structure with Sinclairs 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 %