Legal Solvers Ltd., an international law firm, is looking to bid on a contract from its head quarter on performing legal services for three important clients in three different counties. If the contract is given to Legal Solvers Ltd, since all current staff fully work on other projects, the firm must recruit one new employee at a salary of $61,000 to handle the additional work required. If the firm is awarded the contract, the firm's partners expect toobtain additional new clients from the respective counties with high level of certainty. Excluding the three counties, expected new work is 840 hours at an average billing rate of $90 per hour.

Within the contexts of risk and profitability, discuss the degree of operating leverage (DOL) and its characteristics.