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UMGC The Rat Race Home Security Inc Fixed Costs & Interest Expense Exercise

 

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

Average selling price per unit $321.

Variable cost per unit $181

Units sold 373

Fixed costs $5,425

Interest expense $18,055

Based on the data above, what is the degree of financial leverage of Rat Race Home Security, Inc.?