Office Supplies recently reported $19,500 of sales, $8,250 of operating costs other than depreciation, and $1,750 of depreciation. It had $9,000 of bonds outstanding that carry a 7.0% interest rate, and its federal-plus-state income tax rate was 40%. How much was the firm's earnings before taxes (EBT)?

Question 16 options:

a)

$5,981

b)

$7,398

c)

$7,870

d)

$8,870