Sea Line is a massive cargo ship company that contracts with larger, wellknown shippers to provide container shipping by sea to any deep water port in the world. Sea Line owns ships, and currently has contracts for of those ships. The other shippers pay Sea Line $ per year to provide shipping services for their customers' containers. Sea Line is considering a new contract where they would provide ships to a new company for $ per year. Each Sea Line ship incurs yearly costs of $ for labor, $ for fuel, $ in fixed overhead, and $ in variable overhead.
What would be the differential gain or loss on this new contract?
Select one:
a A differential loss of $
b Cannot be determined from the information provided
c A differential gain of $
d A differential gain of $
e A differential loss of $
