Rao Construction recently reported $20.50 million of sales, $12.60 million of operating costs other than depreciation, and $4.00 million of depreciation. It had $8.50 million of bonds outstanding that carry a 8.0% interest rate, and its federal-plus-state income tax rate was 40%. What was Raos operating income, or EBIT, in millions?

$3.22 / $3.57/ $3.90/ $4.41/ $4.90