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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 follows:
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 Debt @ 108 Common stock, $10 per share Sinclair $840,000 560,000 Boswell 0 $1,400,000 $1,400,000 $1,400,000 56,000 140,000 Common shares Sales (54,000 units at $15 each) Less: Variable costs Operating Plan $810,000 648,000 ($12 per unit) 0 $810,000 324,000 ($6 per unit) 304,000 Fixed costs Earnings before interest and taxes (EBIT) $162,000 $182,000 a. If you combine Sinclair's capital structure with Boswell's operating plan, what is the DCL? (Round the final answer to 2 decimal places.) DCL b. If you combine Boswell's capital structure with Sinclair's operating plan, what is the DCL? (Round the final answer to 2 decimal places.) DCL X c. Not available in Connect. d. In part b, if sales double, by what percentage will EPS increase
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