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Use the following information about Rat Race Home Security, Inc. to answer the questions: Average selling price per unit $317. Variable cost per unit $198
Use the following information about Rat Race Home Security, Inc. to answer the questions:
Average selling price per unit $317.
Variable cost per unit $198
Units sold 315
Fixed costs $9,229
Interest expense 19,455
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 6.6 percent?
(You should calculate the degree of financial leverage first).
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