Bern's Farms recently reported $37.00 million of sales, $15.70 million of operating costs other than depreciation, and $6.00 million of depreciation. It had $3.50 million of bonds outstanding that carry a 5.0% interest rate, and its federal-plus-state income tax rate was 25%. What was Rao's operating income, or EBIT, in millions?

a.$15.30

b.$11.09

c.$14.40

d.$14.14

e.$12.40

Gentry Corp. recently reported $19,000 of sales, $9,050 of operating costs other than depreciation, and $1,500 of depreciation. It had $10,000 of bonds outstanding that carry a 6.0% interest rate, and its federal-plus-state income tax rate was 25%. How much was the firm's earnings before taxes (EBT)?

a.$3,799

b.7850

c.$4,211

d.$4,870

e.$8,065