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	$30,720
Direct operating expenses	27,200	20,040
Sales	108,000	78,000
Interest expense			$ 2,040
General overhead			18,160
Income tax			4,700

The gross profit for the Rails Division is

	a.	$60,800
	b.	$8,700
	c.	$21,150
	d.	$33,600