The factoring department of Inter American Bank (IAB) is processing 100,000 invoices per year with average invoice value of \($1,500.\) IAB buys the accounts receivable at 4 percent off the invoice value. The average collection period is 30 days. Currently 2 percent of the accounts receivable turns out to be bad debt. The annual interest rate is 10 percent. The annual operating expense of this department is \($400,000.\) What is the gross profit before interest and tax for the factoring department of IAB?