Rao Construction Recently Reported $28

Rao Construction recently reported $28.00 million of sales,$12.60 million of operating costs other than depreciation,and $3.00 million of depreciation.It had $8.50 million of bonds outstanding that carry a 7.0% interest rate,and its federal-plus-state income tax rate was 40%.What was Rao's operating income,or EBIT,in millions?

A) $11.66
B) $11.78
C) $12.15
D) $12.40
E) $13.52