Use the following information aboutABC Security, Inc. to answer the questions:

Average selling price per unit $345.

Variable cost per unit $180

Units sold 438

Fixed costs $9,344

Interest expense 19,605

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 7.0 percent?

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