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Use the following information about Rat Race Home Security, Inc. to answer the questions:
Average selling price per unit $324.
Variable cost per unit $181
Units sold 480
Fixed costs $7,748
Interest expense 16,736
Question 1: 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 9.6 percent? (You should calculate the degree of financial leverage first). Round the answer to two decimals (in percentage form).
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