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 @ 11%	$	1,800,000			0
Common stock, $10 per share		1,200,000		$	3,000,000
Total	$	3,000,000		$	3,000,000
Common shares		120,000			300,000
Operating Plan:
Sales (70,000 units at $20 each)	$	1,400,000		$	1,400,000
Variable costs		1,120,000			700,000
Fixed costs		0			320,000
Earnings before interest and taxes (EBIT)	$	280,000		$	380,000

The variable costs for Sinclair are $16 per unit compared to $10 per unit for Boswell.

a.	If you combine Sinclair