Degree of Operating Leverage (DOL)

JMC Corp. also wants to double its sales to 1,000,000 bottles next year. Towards that, it plans to restructure its capital. It currently is financed entirely by the equity of $200,000. It plans to reduce its equity 50% and borrow long-term debt of $200,000 @ 5% interest cost.

1) Calculate the new Degree of Operating Leverage (DOL)