Gordon's Plants has the following partial income statement for 2012:
Earnings before interest and taxes.............$ 4,500
Interest.............................................(2,000)
Earnings before taxes............................$ 2,500
Taxes (40%).......................................(1,000)
Net income.......................................$ 1,500
Number of common shares......................1,000
What is the degree of financial leverage for Gordon's? What does this value mean?