$3$ pts

Edward Construction recently reported $$18\mathrm{.}00$ million of sales, $$12\mathrm{.}60$ million of operating costs other than depreciation, and $$3\mathrm{.}00$ million of depreciation. It had $$8\mathrm{.}50$ million of bonds outstanding that carry a $7\mathrm{.}0\%$ interest rate, and its federalplus$-$state income tax rate was $40\%.$ What was Edward's operating income, or EBIT, in millions?

$$2\mathrm{.}40$

$$1\mathrm{.}90$

$$2\mathrm{.}88$

$$2\mathrm{.}11$

$$2\mathrm{.}78$