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Use the following information about Rat Race Home Security, Inc. to answer the questions:
Average selling price per unit $312.
Variable cost per unit $183
Units sold 345
Fixed costs $7,332
Interest expense 14,766
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 -1.9 percent? (You should calculate the degree of financial leverage first). Round the answer to two decimals (in percentage form).
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