Pinches Salt Company has the following income statement for 2006

SALES	$5,000,000
Variable operating cost	1,000,000
Fixed operating costs	2,000,000
EBIT	$2,000,000
Interest	500,000
`EBT	$1,500,000
Tax (at 40%)	600,000
EAT	$ 900,000
Preferred Dividends	100,000
Earnings available to common stockholders	800,000
Shares outstanding	400,000

Compute Pinches DOL? Degree of Operating Leverage