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 $47,100       $28,300         Direct operating expenses 27,400       21,300         Sales 93,600       69,000         Interest expense     $2,300       General overhead     19,600       Income tax     4,200       The gross profit for the Locomotive Division is a.$69,000 b.$40,700 c.$47,700 d.$19,400

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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 $47,100       $28,300        
Direct operating expenses 27,400       21,300        
Sales 93,600       69,000        
Interest expense     $2,300      
General overhead     19,600      
Income tax     4,200      

The gross profit for the Locomotive Division is

a.$69,000
b.$40,700
c.$47,700
d.$19,400
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