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	$46,600	$28,400
Direct operating expenses	27,100	22,700
Sales	95,500	68,800
Interest expense			$2,700
General overhead			19,800
Income tax			4,400

The gross profit for the Locomotive Division is

a.$68,800

b.$40,400

c.$46,100

d.$17,700