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

selling price per unit	$84
manufacturing costs:
variable manufacturing cost per unit produced:
Direct materials	$12
Direct labor	$15
Variable manufacturing overhead	$4
Fixed manufacturing overhead per year	$432,000
Selling and administrative expenses:
Variable selling and administrative expense per unit sold	$5
fixed selling and administrative expense per year	$61,000

	year 1	year 2
units in beginning inventory	0	3,000
units produced	12,000	9,000
units sold	9,000	10,000
units in ending inventory	3,000	20,000

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

A. 136,000

B. 75,000

C. 186,000

*it is not 87,000