1. 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	$46,100	$31,000
   Direct operating expenses	27,600	23,000
   Sales	96,800	67,100
   Interest expense			$2,400
   General overhead			19,100
   Income tax			4,500

   The income from operations for the Rails Division is

   a.$69,200

   b.$23,100

   c.$50,700

   d.$96,800