Question
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
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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 Total Cost of goods sold $46,600 $31,100 Direct operating expenses 26,500 21,500 Sales 95,500 65,600 Interest expense $2,500 General overhead 18,000 Income tax 4,000
The income from operations for the Locomotive Division is
a.$34,500
b.$44,100
c.$13,000
d.$65,600
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 | $31,100 | |
| Direct operating expenses | 26,500 | 21,500 | |
| Sales | 95,500 | 65,600 | |
| Interest expense | $2,500 | ||
| General overhead | 18,000 | ||
| Income tax | 4,000 |
The income from operations for the Locomotive Division is
a.$34,500
b.$44,100
c.$13,000
d.$65,600
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Macroeconomics
Authors: Olivier J. Blanchard
7th Global Edition
1292160500, 978-1292160504
