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%		$1,140,000			0
Common stock, $10 per share		760,000			$1,900,000
		$1,900,000			$1,900,000
Common shares		76,000			190,000
Operating Plan
Sales (59,000 units at $25 each)		$1,475,000			$1,475,000
Less: Variable costs		1,062,000			708,000
		($18 per unit)			($12 per unit)
Fixed costs		0			309,000
Earnings before interest and taxes (EBIT)		$413,000			$458,000

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

DCL:

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

DCL:

c. In part b, if sales double, by what percentage will EPS increase?

EPS will increase by: %