Luther Corporation Consolidated Income Statement Yoar onded December 31 (in Smillions) 2006 610.1 (500-2) 109.9 2005 5726 (387.6) 185 Total sales Cont of sales Gross profit Selling general, and administrative expenses Research and development Depreciation and amortization Operating income (40.5) (24.6) (3.6) 412 (408) (20.4) (3.4) 120.4 O A. 1204% OB. 6.02% OC 9.64% OD 14.45% (3.6) 41.2 (3.4) 120.4 Depreciation and amortization Operating income Other income Earnings before interest and taxes (EBIT) Interest income (expense) Pretax income Taxes Net income 412 (25.1) 16.1 (5.5) 10.6 120.4 (143) 108.1 (37.135) 68.965 Price per share Sharing outstanding (millions) Stock options outstanding (millions) $16 10.2 0.3 $15 B.O 0.2 Interest income (expense) Pretax income Taxes Net income (25.1) 16.1 (5.5) 10.6 (14.3) 106.1 (37.135) 68.965 $16 102 0.3 $15 8.0 0.2 Price per share Sharing outstanding (millions) Stock options outstanding (millions) Stockholders' Equity Total Liabilities and Stockholders' Equity 126.6 533.1 63.6 386.7 Refer to the income statement above. Luthor's net profit margin for the year ending December 31, 2005 is closest to