6. Assume that Cane normally produces and sells 90,000 Betas per year. What is the financial advantage (disadvantage) of discontinuing the Beta product line? Financial (disadvantage) $ (1,800,000) Explanation: 6. Financial advantage/disadvantage of dropping the Beta product line is computed as follows: Contribution margin lost if the Beta product line is dropped* $ (3,600,000) Traceable fixed manufacturing overhead 1,800,000 Financial (disadvantage) if Beta is dropped $ (1,800,000) *Beta's contribution margin per unit is $40 ($80 - $40). Therefore, the decrease in contribution margin if Beta is dropped would be $3,600,000 (= 90,000 units x $40)