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

A) $104,000
B) $33,000
C) $3,000
D) $136,000

Absorption Costing

A pricing approach that incorporates all expenses related to manufacturing, such as direct materials, direct labor, and all manufacturing overhead costs, whether they are fixed or variable, into the product's cost.

Net Operating Income

The profit generated from a company's core business operations, excluding income and expenses from unusual, non-operating items.

Operating Loss

A financial situation where a company's operating expenses exceed its gross profits or revenues.