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

Average selling price per unit $344.

Variable cost per unit $182

Units sold 480

Fixed costs $7,864

Interest expense 12,727

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 6.1 percent?

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

Answer rating: 100% (QA)

Okay lets solve this stepbystep 1 Calculate operating profit Revenue Units sold x Averag... View the full answer