Luther Corporation

Consolidated Income Statement

Year ended December 31 (in $millions)

	2006	2005
Total sales	610.1	564.9
Cost of sales	-500.2	-360.5
Gross profit	109.9	204.4
Selling, general, and administrative expenses	-40.5	-40.5
Research and development	-24.6	-23.5
Depreciation and amortization	-3.6	-3.4
Operating income	41.2	137
Other income	--	--
Earnings before interest and taxes (EBIT)	41.2	137
Interest income (expense)	-25.1	-14.3
Pretax income	16.1	122.7
Taxes	-5.5	-42.945
Net income	10.6	79.755
Price per share	$16	$15
Sharing outstanding (millions)	10.2	8.0
Stock options outstanding (millions)	0.3	0.2
Stockholders' Equity	126.6	63.6
Total Liabilities and Stockholders' Equity	533.1	386.7

Refer to the income statement above. Luther's return on assets (ROA) for the year ending December 31, 2006 is closest to ________.

		D) 1.99%
		A) 24.32%
		B) 6.70%
		C) 20.62%