MGT 3430-Sinclair Manufacturing and Boswell Brothers Inc

Sinclair Manufacturing and Boswell Brothers Inc. are both involved in the production of brick for the homebuilding industry. Their financial information is as follows:SinclairBoswell Capital Structure Debt @ 11%$1,980,000 0 Common stock, $10 per share1,320,000 $3,300,000 Total$3,300,000 $3,300,000 Common shares132,000 330,000 Operating Plan: Sales (73,000 units at $20 each)$1,460,000 $1,460,000 Variable costs1,168,000 730,000 Fixed costs0 323,000 Earnings before interest and taxes (EBIT)$292,000 $407,000 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? (Round your answer to 2 decimal places.) Degree of combined leverage b.If you combine Boswell’s capital structure with Sinclair’s operating plan, what is the degree of combined leverage? (Round your answer to the nearest whole number.) Degree of combined leverage c.In part b, if sales double, by what percentage will EPS increase? (Round your answer to the nearest whole percent.) EPS will increase by %