A company reported $20.5 million of sales, $12.6 million of operating costs other than depreciation, and $3 million of depreciation. It had $8.5 million of debt outstanding that requires a $0.595 million interest payment per year. applicable tax rate was 40%. Calculate the operating income,reported in millions and rounded to two decimal points.

Choose the answer :

a. $3.97

b. $3.57

c. $4.41

d. $4.90