Structuring a Keep-oc-Drop Product Line Problem with Compiementary Effects Shown below is a segmented income statement for Hickory Company's three wooden flooring product lines: Hickory's management is deciding whether to keep or drop the parquet product line. Hickory's porquet fooring product line has a contribution margin of 550,000 (saies of $300,000 less total variabie costs of $250,000 ). Al variable costs are celevant: Relevant fixed costs associated with this fine include 80% of parquet's machine rent and all of parquet's supervision galarien. In addition, assume that dropping the porquet product line would reduce sales of the strip une by 29% and sales of the plank line by 20 ib. Al other intormation renains the same. Required 1. If the parquet product line is dropped, what is the contribution margin for the strip like? 1. If the parquet product line is dropped, what is the contribution margin for the strip line? For the plank line? 2. Which alternative (keep or drop the parquet product line) is now more cost effective and by how much? by $