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	$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