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	$30,600
   Direct operating expenses	27,900	21,200
   Sales	93,000	68,100
   Interest expense			$2,000
   General overhead			19,800
   Income tax			4,500

   The gross profit for the Rails Division is

   a.$46,900

   b.$19,000

   c.$93,000

   d.$65,100