Combining operating and financial leverage (LO5) Sinclair Manufacturing and Boswt Brothers Inc. are both involved in the production of brick for the homebuilding industry Their financial information is as follows: Capital Structure Sinclair Boswell S 900,000 600,000 $ 1,500,000 Debt 11%. Common stock, $10 per share 1,500,000 Total 150,000 60,000 Operating Plan Sales (55,000 units at $20 each. s 1,100,000 S 1,100,000 550,000 ($16 per unit) ($10 per unit) 880,000 0 305000 220,000 S 245,000 Fixed costs.... Earnings before interest and taxes (EBIT) a. If you combine Sinclair's capital structure with Boswell's operating plan, what is the degree of combined leverage? (Round to two places to the right of the decimal point.) b. If you combine Boswell's capital structure with Sinclair's operating plan, what is the degree of combined leverage? c. Explain why you got the results you did in part b. d In part b, if sales double, by what percentage will EPS increase