Selling price per unit 559 Manufacturing costs Variable manufacturing cost per unit produced Direct materials $ 11 Direct labor $6 Variable manufacturing overhead $4 Fixed manufacturing overhead per year $88,000 Selling and administrative expenses: Variable selling and administrative expense per unit sold $4 Fixed selling and administrative expense per year $80,000 Year1 Year 2 Units in beginning inventory 0 1,000 Units produced during the year 11,000 8,000 Units sold during the year 10,000 5,000 Units in ending inventory 1,000 4,000 The net operating income (loss) under absorption costing in Year 1 is closest to