Klein Company distributes a high-quality bird feeder that sells for $30 per unit. Variable costs are $12 per unit, and fixed costs total $270,000 annually.

Assume that the operating results for last year were as follows

Sales (60,000 Units) total: $600,000

Variable Cost total:240,000

Contribution Margin total: 360,000

Fixed Cost total:270,000

Operating Income total:90,000

Compute the degree of operating leverage at the current level of sales.