Degree of Operating Leverage Calculation

Company XYZ is a manufacturing firm that produces widgets. In the last fiscal year, the company reported fixed costs of $500,000 and variable costs of $20 per widget. If they sold 25,000 widgets at a price of $50 each, what is the degree of operating leverage (DOL) at this level of sales? The degree of operating leverage measures how sensitive the operating income is to changes in sales volume.