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