XYZ Corporation is analyzing its financial performance and is particularly interested in understanding its total leverage. The company has the following financials:
- Earnings Before Interest and Taxes (EBIT): $500,000
- Interest Expense: $100,000
- Number of Units Sold: 10,000
- Price per Unit: $75
- Variable Cost per Unit: $45
- Fixed Costs: $250,000
Using this data, what is the degree of total leverage (DTL) at the current sales level?