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	$29,900
Direct operating expenses	26,200	20,000
Sales	95,500	66,600
Interest expense			$2,800
General overhead			19,300
Income tax			4,200

The net income for Train Corporation is

a.$13,100

b.$72,000

c.$39,400

d.$85,600

2)

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	$46,200	$29,800
Direct operating expenses	27,100	21,500
Sales	96,800	68,100
Interest expense			$2,700
General overhead			18,100
Income tax			4,100

The gross profit for the Rails Division is

a.$50,600

b.$23,500

c.$96,800

d.$69,700

3)