What will be the resulting percentage change in earnings


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

Average selling price per unit $318.

Variable cost per unit $187

Units sold 328

Fixed costs $9,145

Interest expense 14,891

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 -5.0 percent?

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

(Write the percentage sign in the "units" box).

Round the answer to two decimals

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Financial Management: What will be the resulting percentage change in earnings
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