Homeyer Corporation has provided the following data for its two most recent years of operation: Selling price per unit $65 Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials $9 Direct labor $5 Variable manufacturing overhead $2.50 Fixed manufacturing overhead per year \$ 135,000 Selling and administrative expenses: Variable selling and administrative expense per unit sold $4 Fixed selling and administrative expense per year $74,000 The net operating income (loss) under absorption costing in Year 1 is closest to