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Sinclair Manufacturing and Boswell Brothers Inc. are both involved in the production of brick for the homebuilding industry. Their financial information is as follows: Sinclair

Sinclair Manufacturing and Boswell Brothers Inc. are both involved in the production of brick for the homebuilding industry. Their financial information is as follows: Sinclair Boswell Capital Structure Debt @ 10% $ 2,100,000 0 Common stock, $10 per share 1,400,000 $ 3,500,000 Total $ 3,500,000 $ 3,500,000 Common shares 140,000 350,000 Operating Plan: Sales (75,000 units at $15 each) $ 1,125,000 $ 1,125,000 Variable costs 900,000 450,000 Fixed costs 0 325,000 Earnings before interest and taxes (EBIT) $ 225,000 $ 350,000

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