# NEED HELP WITH THIS OTHER PROBLEM….

NEED HELP WITH THIS OTHER PROBLEM…..

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

 Sinclair Boswell Â Â Capital Structure Â Â Debt @ 11% \$ 1,440,000 0 Â Â Common stock, \$10 per share 960,000 \$ 2,400,000 Â Â Â Â Total \$ 2,400,000 \$ 2,400,000 Â Â Common shares 96,000 240,000 Â Â Operating Plan: Â Â Sales (64,000 units at \$20 each) \$ 1,280,000 \$ 1,280,000 Â Â Variable costs 1,024,000 640,000 Â Â Fixed costs 0 314,000 Â Â Earnings before interest and taxes (EBIT) \$ 256,000 \$ 326,000

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 The variable costs for Sinclair are \$16 per unit compared to \$10 per unit for Boswell.

 a. If you combine Sinclairâ€™s capital structure with Boswellâ€™s operating plan, what is the degree of combined leverage?Â (Round your answer to 2 decimal places.)

 Â Â Degree of combined leverage [removed]

 b. If you combine Boswellâ€™s capital structure with Sinclairâ€™s operating plan, what is the degree of combined leverage?Â (Round your answer to the nearest whole number.)

 Â Â Degree of combined leverage [removed]

 c. In part b, if sales double, by what percentage will EPS increase?Â (Round your answer to the nearest whole percent.)

 Â Â EPS will increase by [removed]Â %
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NEED HELP WITH THIS OTHER PROBLEM….