Structuring a Keep-or-Drop Product Line Problem with Complementary Effects Shown below is a segmented income statement for Hickory Company's three wooden fiooring product lines: Hickory's management is deciding whether to keep or drop the parquet 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 parquet's machine rent and all of parquet's supervision salarles, In addition, assume that dropping the parquet product line would reduce sales of the strip line by 24% and sales of the plank tine by 20%. All other information remains the same Required: 1. If the parquet product line is dropped, what is the contribution margin for the strip line? 4 For the plank line? 2. Which alkernative (keep or drop the parquet product line) is now more cost effective and by now much? by 5