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 @ 11% $900,000 0 Common stock, $10 per share 600,000 $1,500,000 $1,500,000 $1,500,000 Common shares 60,000 150,000 Operating Plan Sales (55,000 units at $20 each) $1,100,000 $1,100,000 Less: Variable costs 880,000 550,000 ($16 per unit) ($10 per unit) Fixed costs 0 305,000 Earnings before interest and taxes (EBIT) $220,000 $245,000

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

DCL 2.58 Numeric Response 1.Edit Unavailable. 2.58 incorrect.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 1.00 Numeric Response 2.Edit Unavailable. 1.00 correct.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 100 Numeric Response 3.Edit Unavailable. 100 correct.%