Structuring a Keep-or-Drop Product Line Problem Shown below is a segmented income statement for Orzo Company's three laminated flooring product lines: Strip Plank Parquet Total $900,000 595,000 $400,000 $200,000 Less: Variable expenses Contribution margin Less direct fixed expenses: 250,000 50,000 $30,.0o0 $175,000 $80 (5,000) (20,000) (15,000) (10,000) (10,000) $ 40,000 (50,000) (20,000) (25,000) s (45,000) Machine rent (75,000) (45,000) (70,000) $115,000 Supervision Depreciation (35,000) Segment margin $120,000 Orzo's management is deciding whether to keep or drop the parquet product line. Orzo'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. R costs associated with this line include $30,000 in machine rent and $4,700 in supervision salaries. elevant fixed Required: 1. List the alternatives being considered with respect to the parquet flooring line