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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

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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 Boswell Capital Structure Debt @ 10% Common stock, $10 per share Total $1,020,000 680,000 1.700,000 $1,700,000 1,700,000 170,000 Common shares 68,000 Operating Plan: Sales (57,000 units at $15 each) Variable costs Fixed costs S 855,000 855,000 342,000 307,000 S 171,000 206,000 684,000 Eamings before interest and taxes (EBIT) The variable costs for Sinclair are $12 per unit compared to S6 per unit for Boswell a. If you combine Sinclair's capital structure with Boswell's operating plan, what is the degree of combined leverage? (Round your answer to 2 decimal places.) Degree of combined leverage b. If you combine Boswell's capital structure with Sinclair's operating plan, what is the degree of combined leverage? (Round your answer to the nearest whole number.) Degree of combined leverage c. In part b, if sales double, by what percentage will earnings per share (EPS) increase? (Round your answer to the nearest whole percent.) EPS will increase by

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