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:

a. If you combine Sinclair's capital structure with Boswell's operating plan, what is the DCL?
b. If you combine Boswell's capital structure with Sinclair's operating plan, what is the DCL?
c. Explain why you got the results you did in parts a and b.
d. In part b, if sales double, by what percentage will EPS increase? 150 Part

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Capital Structure Sinclair Boswell Debt @ 12%.... $ 600,000 Common stock, $10 per share.. 400,000 1,000,000 $1,000,000 $1,000,000 100,000 Common shares 40,000 ... . Operating Plan Sales (50,000 units at $20 each)... $1,000,000 $1,000,000 Less: Variable costs . 800,000 500,000 ($16 per unit) ($10 per unit) Fixed costs... 300,000 $ 200,000 $ 200,000 Earnings before interest and taxes (EBIT)....