Shown below is a segmented income statement for Hickory Company's Kitchen Set product lines:

Shown below is a segmented income statement for Hickory Company's Kitchen Set product lines: Sales Revenue Less: Variable Expenses Contribution Margin Less Direct Fixed Expenses: Machine Rent Supervision Depreciation Segment Margin Teflon 400,000 225,000 175,000 (5,000) (15,000) (35,000) 120,000 Spatula 200,000 120,000 80,000 (20,000) (10,000) (10,000) 40,000 Roaster 300,000 250,000 50,000 (50,000) (20,000) (25,000) (45,000) Total 900,000 595,000 305,000 (75,000) (45,000) (70,000) 115,000 Refer to the information for Hickory Company above. Hickory's management is deciding whether to keep or drop the Roaster product line. Hickory's parquet flooring product line has a contribution margin of $50,000 (sales of $300,000 less total variable costs of $250,000). All variable costs are relevant. Relevant fixed costs associated with this line include 80% of Roaster's machine rent and all of Roaster's supervision salaries. Required: 2. 3. Would you recommend the company to drop the Roaster Product line? Support your answer with appropriate computations. There is additional information that the elimination of the Roaster line would result in a 20% decrease in the sales of the Spatula line. Do you think the company should drop the Roaster line? List other factors that Hickory should consider in deciding whether to drop the Roaster line (at least 2 factors).