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

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

Average selling price per unit $337.

Variable cost per unit $199

Units sold 312

Fixed costs $6,962

Interest expense $17,852

Based on the data above, what is the degree of financial leverage of Rat Race Home Security, Inc.?

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Answer #1

EBIT = Earnings Before Interest and Tax
EBT = Earnings Before Tax

Now:

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