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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: Sinclair

Sinclair Manufacturing and Boswell Brothers Incorporated are both involved in the production of brick for the homebuilding industry. Their financial information is as follows:
Sinclair Boswell
Capital Structure
Debt @ 11% $ 720,0000
Common stock, $10 per share 480,000 $ 1,200,000
Total $ 1,200,000 $ 1,200,000
Common shares 48,000120,000
Operating Plan:
Sales (52,000 units at $20 each) $ 1,040,000 $ 1,040,000
Variable costs 832,000520,000
Fixed costs 0302,000
Earnings before interest and taxes (EBIT) $ 208,000 $ 218,000
The variable costs for Sinclair are $16 per unit compared to $10 per unit for Boswell.
If you combine Sinclairs capital structure with Boswells operating plan, what is the degree of combined leverage?
Note: Round your answer to 2 decimal places.
If you combine Boswells capital structure with Sinclairs operating plan, what is the degree of combined leverage?
Note: Round your answer to the nearest whole number.
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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