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

Selling price per unit $ $50$

Manufacturing costs:

Variable manufacturing cost per unit produced:

Direct materials $ $10$

Direct labor $ $6$

Variable manufacturing overhead $ $5$

Fixed manufacturing overhead per year $$72,000$

Selling and administrative expenses:

Variable selling and administrative expense per unit sold $ $5$

Fixed selling and administrative expense per year $$70,000$

Year $1$ Year $2$

Units in beginning inventory $03,000$

Units produced during the year $9,0008,000$

Units sold during the year $6,0009,000$

Units in ending inventory $3,0002,000$

The net operating income $($loss$)$ under absorption costing in Year $1$ is closest to:

Multiple Choice

$$126,000$

$$96,000$

$$26,000$

$$2,000$