Mandato Corporation has provided the following data for its two most recent years of operation: Selling price per unit $ $ 68 Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead per year Selling and administrative expenses: Variable selling and administrative expense per unit sold Fixed selling and administrative expense per year 10 $ 6 $ 4 $ 220,000 $ 6 $ 61,000 Units in beginning inventory Units produced during the year Units sold during the year Units in ending inventory Year 1 Year 2 0 1,000 11,000 10,000 10,000 7,000 1,000 4,000 The net operating income (loss) under variable costing in Year 1 is closest to: $2,000 $26.000 O $144,000 $174,000