Use this information for Train Corporation to answer the questions that follow.

The following financial information was summarized from the accounting records of Train Corporation for the current year ended December 31:

-The gross profit for the Locomotive Division is
A) $57,960
B) $14,790
C) $27,240
D) $47,280

Question

Use this information for Train Corporation to answer the questions that follow.
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The following financial information was summarized from the accounting records of Train Corporation for the current year ended December 31:
​
 
-The gross profit for the Locomotive Division is
A) $57,960 
B) $14,790 
C) $27,240 
D) $47,280

Quizplus · Accepted Answer

To calculate the gross profit for the Locomotive Division, we need to subtract cost of goods sold from net sales. From the given information, we can see that the net sales for Locomotive Division is $102,000 and the cost of goods sold is $54,720.

Therefore, gross profit for Locomotive Division = $102,000 - $54,720 = $47,280.

Hence, the correct answer is D.

Use This Information for Train Corporation to Answer the Questions