JMC Corp. sells 500,000 bottles of its herbal soda drinks per year. Each bottle produced is sold for $0.45 and has a variable cost of $0.25. The fixed operating costs for the firm are $50,000. The corporate tax for the firm is 40%.

Calculate and explain/analyze Degree of financial Leverage (include definition, and whats the final values mean in respect to earnings before interest and tax to earning before tax)

Long-Term Debt	$ 200,000.00
Interest Rate	5%
Interest Expense = Long-Term Debt * Interest Rate	$ 10,000.00
Earning Before Interest and Taxes (EBIT) = Sales - Total Variable Cost	$ 200,000.00
Earning Before Taxes (EBT) = EBIT - Interest Expenses	$ 190,000.00
= Degree of Financial Leverage (DFL)=EBIT/(EBIT -Interest)
Degree of Financial Leverage (DFL) =	1.053