Acme Inc. recently reported $15,000 of sales, $7,500 of operating costs other than depreciation, and $1,200 of depreciation. The company had no amortization charges, it had outstanding $6,500 of bonds that carry a 6.25% interest rate, and its federal-plus-state income tax rate was 35%. How much was the firm's net income?

Select one:

a.

$3,284.55

b.

$3,457.42

c.

$3,639.39

d.

$3,830.94

e.

$4,022.48