Question: Bates, Inc. sells fog machines. Use the following information about Bates, Inc. to answer the question below. Average selling price per unit = $338 Variable cost per unit = $210 Units sold = 339 Fixed costs = $15826 Interest expense = $4836
Based on the figures above, what is the percentage change in earnings per share if the company expects units produced and sold to change by -1.8 percent?
(Calculate the degree of total (combined) leverage first.)