Badoni Corporation has provided the following data for its two most recent years of operation: The net operating income (loss) under variable costing in Year 2 is closest to:

A) $180,000
B) $195,000
C) $59,000
D) $7,000

Variable Costing

A costing method that includes only variable costs - costs that vary with production levels - in the cost of goods sold and excludes fixed costs.

Net Operating Income

The profit generated from a company's everyday business operations, indicating the efficiency of management.