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Use the following information about Rat Race Home Security, Inc

Finance

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

Average selling price per unit $311.

Variable cost per unit $190

Units sold 393

Fixed costs $7,134

Interest expense 16,630

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).