Rao Construction recently reported $20.50 million of sales, $12.60 million cost of goods sold, and $3.00 million of depreciation and amortization. It had $8.50 million of bonds outstanding that carry a 7.0% interest rate, and its federal-plus-state income tax rate was 40%. What was Rao's operating income, or EBIT?

$3.21M

$3.57M

$3.97M

$4.41M

$4.90M