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

Selling price per unit $67

Manufacturing costs:

Variable manufacturing cost per unit produced:

Direct materials $10

Direct labor $5

Variable manufacturing overhead $3

Fixed manufacturing overhead per year $252,000

Selling and administrative expenses:

Variable selling and administrative expense per unit sold $4

Fixed selling and administrative expense per year $65,000

Year 1:

Units in beginning inventory: 0

Units produced during the year: 9,000

Units sold during the year: 8,000

Units in ending inventory: 1,000

Year 2:

Units in beginning inventory: 1,000

Units produced during the year: 7,000

Units sold during the year: 7,000

Units in ending inventory: 1,000

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