Yummy Marshmallow Company. is considering dropping its extra$-$large marshmallow product. In order

to evaluate their decision, they are preparing a continue or discontinue differential analysis. They have

collected the following relevant costs and revenues in manufacturing the extra$-$large marshmallows:

Total Variable Costs are $$18,000,$ Total Fixed Costs are $$5,000,$ and Revenues from extra$-$large

marshmallows are $$25,000.$

Which of the following will happen if Yummy continues selling their extra$-$large marshmallows?

Yummy will incur a $$13,000$ loss.

Yummy will gain $$20,000$ in profit.

Yummy will incur a $$1,000$ loss.

Yummy will gain $$7,000$ in profit.