Rio Grande manufacture and sell 300000 paper coffee cups annually. Each paper cup has a variable cost of R0,58 and sells for R3.00. Fixed operating costs amount to R16000. The annual interest charge is R3000. Preference shares carry dividends amounting to R 9 000 and a tax rate of 30% applies. The Earnings Before Interest and Tax (EBIT) is:

	A.	R 710 000
	B.	R700 000
	C.	R701 000
	D.	R 711 000