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

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% $600,0000
Common stock, $10 per share 400,0001,000,000
$ 1,000,000 $ 1,000,000
Common shares 40,000100,000
Operating Plan
Sales (50,000 units at $20 each) $ 1,000,000 $ 1,000,000
Less: Variable costs 800,000500,000
($16 per unit)($10 per unit)
Fixed costs 0300,000
Earnings before interest and taxes (EBIT) $ 200,000 $ 200,000
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 %

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