Edge Brothers Recently Reported Net Income of $385,000

Multiple Choice

Edge Brothers recently reported net income of $385,000. The tax rate is 40 percent. The company's interest expense was $200,000. What would have been the company's net income if they would have been able to double their operating income (EBIT) , assuming that the company's tax rate and interest expense remain unchanged?

A) $ 770,000
B) $ 890,000
C) $ 920,000
D) $1,100,000
E) $1,275,000