<PAGE>
 
                                                                      EXHIBIT 11

                      EDUCATIONAL DEVELOPMENT CORPORATION
                      EARNINGS PER SHARE COMPUTATION (B)
                        YEARS ENDED FEBRUARY 29, 1996,
                   FEBRUARY 28, 1995, AND FEBRUARY 28, 1994

<TABLE>
<CAPTION>
                                              1996         1995         1994
<S>                                        <C>           <C>         <C>   
Earnings from continuing operations
 before cumulative  effect of accounting
 change for income                         $1,805,335    $1,163,647  $  631,350
  taxes (a)
 
Discontinued operations, net of tax (a):
  Earnings (loss) from operations             (25,637)        8,139     (27,699)
  Loss on disposal                           (300,984)            -           -
                                           ----------    ----------  ----------
                                             (326,621)        8,139     (27,699)
                                           ----------    ----------  ----------
Earnings before cumulative effect of
 accounting change
 for income taxes (a)                       1,478,714     1,171,786     603,651
 
Cumulative effect of accounting change
 for income
 taxes (a)                                          -             -     290,000
                                           ----------    ----------  ----------
 
Net earnings (a)                           $1,478,714    $1,171,786  $  893,651
                                           ==========    ==========  ==========
 
Weighted average number of common           
 shares outstanding                         4,553,658     4,474,520   4,461,022
Add common share equivalents                  785,176       748,970     568,598
                                           ----------    ----------  ----------
 
Weighted average number of common and
 common
  equivalent shares outstanding             5,338,834     5,223,490   5,029,620
Add common share equivalents to compute
 fully diluted
  earnings per share                           10,590        18,812      14,126
                                           ----------    ----------  ----------
 
                                            5,349,424     5,242,302   5,043,746
                                           ==========    ==========  ==========
 
Earnings (loss) per share (a):
  Earnings from continuing operations
   before cumulative
   effect of accounting change for         $     0.34    $     0.22  $     0.13
    income taxes
  Discontinued operations                       (0.06)            -       (0.01)
  Cumulative effect of accounting
   change for income
   taxes                                            -             -        0.06
                                           ----------    ----------  ----------
 
Net earnings per share                     $     0.28    $     0.22  $     0.18
                                           ==========    ==========  ==========
</TABLE>

(a)  Agrees to the related amounts shown on the statements of earnings.

(b)  This calculation is submitted in accordance with Regulation S-K item
     601(b)(11) although not required by footnote 2 to paragraph 14 of APB No.
     15 because it results in dilution of less than 3% or is antidilutive.