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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: Capital
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 @ 12% Common stock, $10 per share Sinclair $1,680,000 1,120,000 Boswell 0 $2,800,000 $2,800,000 $2,800,000 Common shares 112,000 280,000 Operating Plan Sales (68,000 units at $25 each) Less: Variable costs $1,700,000 1,224,000 ($18 per unit) 0 $1,700,000 816,000 ($12 per unit) 318,000 Fixed costs Earnings before interest and taxes (EBIT) $476,000 $566,000 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 X 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? EPS will increase by %
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