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	$47,200	$31,700
   Direct operating expenses	26,200	21,900
   Sales	90,800	67,100
   Interest expense			$2,900
   General overhead			20,000
   Income tax			4,000

   The gross profit for the Locomotive Division is

   a. $35,400

   b. $67,100

   c. $13,500

   d. $45,200

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