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The following financial information was summarized from the accounting records of Train Corporation for the current year ended December 31: Rails Division Locomotive Division Corporate
The following financial information was summarized from the accounting records of Train Corporation for the current year ended December 31:
Rails Division | Locomotive Division | Corporate Total | |
Cost of goods sold | $47,200 | $30,000 | |
Direct operating expenses | 27,000 | 22,100 | |
Sales | 98,100 | 69,600 | |
Interest expense | $2,000 | ||
General overhead | 19,800 | ||
Income tax | 4,000 |
The gross profit for the Rails Division is
a.$50,900
b.$23,900
c.$71,100
d.$98,100
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