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Use the following information about Rat Race Home Security, Inc. to answer the questions: Average selling price per unit $301. Variable cost per unit $189
Use the following information about Rat Race Home Security, Inc. to answer the questions:
Average selling price per unit $301.
Variable cost per unit $189
Units sold 419
Fixed costs $6,795
Interest expense 14,125
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 -0.6 percent?
(You should calculate the degree of financial leverage first).
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