Baylor, Inc. just finished its second year of operations. In the first year it produced 1,000 units and sold 400. The second year resulted in the same production level, but sales were 1,200 units. The variable costing income statements for both years are shown below: The operating income for year 1 using absorption costing would be:

A. $6,000

B. $(9,000)

C. $(9,800)

D. $600

Please show all work

Year $40,000 ear 2 $120,000 Sales Variable cost of goods sold Variable selling and administration $22,000 800 $66,000 2,400 22,800 17,200 68.400 51,600 Contribution margin Fixed overhead Fixe d selling and administration 30,000 15,000 30,000 15,000 45,000 ,60 45,000 Operating income