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Use the following information about Rat Race Home Security, Inc. to answer the questions: Average selling price per unit $302. Variable cost per unit $189

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

Average selling price per unit $302.

Variable cost per unit $189

Units sold 461

Fixed costs $5,130

Interest expense 14,474

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 -3.4 percent?

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

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