Sea Line is a massive cargo ship company that contracts with larger, well$-$known shippers to provide container shipping by sea to any deep water port in the world. Sea Line owns $50$ ships, and currently has contracts for $41$ of those ships. The other shippers pay Sea Line $$3,000,000$ per year to provide shipping services for their customers$$ containers. Sea Line is considering a new contract where they would provide $5$ ships to a new company for $$2,700,000$ per year. Each Sea Line ship incurs yearly costs of $$1,320,000$ for labor, $$360,000$ for fuel, $$1,200,000$ in fixed overhead, and $$600,000$ in variable overhead.

What would be the differential gain or loss on this new contract?

Select one:

a$.$

A differential loss of $$1,500,000$

b$.$

A differential gain of $$2,100,000$

c$.$

A differential gain of $$5,100,000$

d$.$

A differential loss of $$3,900,000$

e$.$

Cannot be determined from the information provided