Other Homework Help

Use the following information about Rat Race Home Security, Inc. to answer the questions:

Average selling price per unit $341.

Variable cost per unit $183

Units sold 306

Fixed costs $6,680

Interest expense 19,663

Based on the data above, what will be the resulting percentage change in earnings per share of Rat Race Home Security, Inc. if they expect operating profit to change 7.8 percent?

(You should calculate the degree of financial leverage first).