EL DISFRAZ, S.A." It makes children's costumes and sells 10,000 units a year. Each costume produced has a variable operating cost of $ 90 and sells for $ 250. Fixed operating costs are $ 580,000. The company has annual interest expenses of $ 60,000, preferred stock dividends of $ 25,000, and a 40% tax rate.

Use the Degree of Financial Leverage (DFL) formula to calculate the DFL ?