Badoni Corporation has provided the following data for its two most recent years of operation:

Selling price per unit $ 85

Manufacturing costs:

Variable manufacturing cost per unit produced:

Direct materials $ 10

Direct labor $ 6

Variable manufacturing overhead $ 4

Fixed manufacturing overhead per year $ 96,000

Selling and administrative expenses:

Variable selling and administrative expense per unit sold $ 5

Fixed selling and administrative expense per year $ 77,000

	Year 1	Year 2
Units in beginning inventory	0	1,000
Units produced during the year	8000	6000
Units sold during the year	7000	3000
Units in ending inventory	1000	4000

The net operating income (loss) under variable costing in Year 2 is closest to:

a. $180,000

b. $195,000

c. $59,000

d.$7,000