Last year Almazan Software reported $10.000 million of sales, $5.500 million of operating costs other than depreciation, and $1.300 million of depreciation. The company had $5.000 million of bonds that carry a 6.5% interest rate, and its federal-plus-state income tax rate was 25%. This year's data are expected to remain unchanged except for one item, depreciation, which is expected to increase by $0.350 million. By how much will net income change as a result of the change in depreciation? The company uses the same depreciation calculations for tax and stockholder reporting purposes. (Round your final answer to 4 decimal places.)

a. -$0.0875 million

b. -$0.2625 million

c. -$0.3500 million

d. -$0.4375 million

e. $0.0000 million