Companies generate from their regular operations and from other sources like interest earned on the securities they hold, which is called non-operating income. Lindely textiles recently reported $50,000 of sales $7,250 of operating costs other thandepreciation, and $1000 of depreciation. The company had no amortization charges and no non-operating income. It had $8,000 of bonds outstanding that carry a %7.5 interest rate, and its federal-plus-state income tax rate was 40%. How much was Lindley's operating income, or EBIT?

A. 42,597

b.40.056

c. 40,903

d. 41,750

e. 39,209