Rao Construction Recently Reported $18

Rao Construction recently reported $18.00 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) $2.78
B) $2.88
C) $1.90
D) 0$2.40
E) $2.11