Why do firms purchase real assets in the form of capital equipment?

Refer to the income statement above. Luther's operating margin for the year ending December 31, 2005 is closest to ________

Luther Corporation Consolidated Income Statement Year ended December 31 (in $millions) 2006 2005 Total sales 610.1 562.8 Cost of sales -500.2 -380.8 Gross profit 109.9 182 Selling, general, and administrative expenses -40.5 -40.7 Research and development -24.6 -23.4 Depreciation and amortization -3.6 -3.3 Operating income 41.2 114.6 Other income -- -- Earnings before interest and taxes (EBIT) 41.2 114.6 Interest income (expense) -25.1 -14.1 Pretax income 16.1 100.5 Taxes -5.5 -35.175 Net income 10.6 65.325 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 A) 10.18% B) 16.29% C) 20.36% D) 24.43%

The data that you are interested in capturing about an entity is called an instance

Indicate whether the statement is true or false