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

Selling price per unit$44Manufacturing costs:Variable manufacturing cost per unit produced:Direct materials$9Direct labor$6Variable manufacturing overhead$4Fixed manufacturing overhead per year$63,000

Selling and administrative expenses:Variable selling and administrative expense per unit sold$5Fixed selling and administrative expense per year$66,000

Year 1Year 2Units in beginning inventory02,000Units produced during the year9,0007,000Units sold during the year7,0008,000Units in ending inventory2,0001,000

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

• $31,000
• $160,000
• $26,000
• $200,000