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

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Sinclair Manufacturing and Boswell Brothers Incorporated are both involved in the production of brick for the homebuilding industry. Their financial information is as ollows: Sinclair Boswell Capital Structure Debt @ 11% Common stock, $ 10 per share $ 900,000 600,000 0 $ 1,500,000 Total Common shares $ 1,500,000 60,000 $ 1,500,000 150,000 Operating plan Variable costs Sales (55,000 units at $20 each) Fixed costs Earnings before interest and taxes (EBIT) $ 1,100,000 880,000 0 $ 220,000 $ 1,100,000 550,000 305,000 $ 245,000 The variable costs for Sinclair are $16 per unit compared to $10 per unit for Boswell. a. If you combine Sinclair's capital structure with Boswell's operating plan, what is the degree of combined leverage? Note: Round your answer to 2 decimal places. Degree of combined leverage 3.77 b. If you combine Boswell's capital structure with Sinclair's operating plan, what is the degree of combined leverage? Note: 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? Note: Round your answer to the nearest whole percent. EPS will increase by %

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