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 $47,900 $28,600 Direct operating expenses 26,500 20,700 Sales 96,200 65,200 Interest expense $2,400 General overhead 19,900 Income tax 4,100
The gross profit for the Locomotive Division is
a.$36,600
b.$65,200
c.$15,900
d.$44,500
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 | $47,900 | $28,600 | |
| Direct operating expenses | 26,500 | 20,700 | |
| Sales | 96,200 | 65,200 | |
| Interest expense | $2,400 | ||
| General overhead | 19,900 | ||
| Income tax | 4,100 |
The gross profit for the Locomotive Division is
a.$36,600
b.$65,200
c.$15,900
d.$44,500
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Introduction To Corporate Finance
Authors: Laurence Booth, Sean Cleary
3rd Edition
978-1118300763, 1118300769
