Effect of New Project on DTL

ABC Corporation has reported a total contribution margin of $500,000 and total fixed costs of $300,000 for the current year. To enhance financial performance, management is considering a new project that requires an increase in total fixed costs by $50,000 while also increasing sales volume and contribution margin by 20%.

What will be the effect of the new project on ABC Corporation's degree of total leverage (DTL) if the current DTL is calculated based on the existing contribution margin and fixed costs? Consider the DTL formula: DTL = Contribution Margin / Earnings Before Interest and Taxes (EBIT), where EBIT can be approximated as Contribution Margin - Fixed Costs.