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 @ 12%		$780,000			0
Common stock, $10 per share		520,000			$1,300,000
		$1,300,000			$1,300,000
Common shares		52,000			130,000
Operating Plan
Sales (53,000 units at $25 each)		$1,325,000			$1,325,000
Less: Variable costs		954,000			636,000
		($18 per unit)			($12 per unit)
Fixed costs		0			303,000
Earnings before interest and taxes (EBIT)		$371,000			$386,000

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 %