Victoria Company sells a single product. The company's sales and expenses for a recent month follow:

TotalPer Unit

SalesP600,000P40

Less: variable expenses420,00028

Contribution marginP180,000P12

Fixed expense150,000

Net operating incomeP30,000

Compute the degree of operating leverage (DOL). Explain what the computed amount of leverage means in terms of the effect of changes in sales to profit.