Structuring a Keep-or-Drop Product Line Problem with Complementary 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 parquet flooring product line has a contribution margin of s50, 000 (sales of $300,000 leis total variable costs of $250,000). Ali variable costs are relevant. Reievant fixed costs associated with this line include 60% of parquet's machine rent and all of parquet's supervision salaries. In addition, assume that dropping the parquet product ine would reduce sales of the strip line by 30% and sales of the plank line by 20%. Nll other information femains the same. Required: 1. If the pareuet product line is dropped, what is the contribution margin for the strip line? x For the plank ine? For the plank line? 2. Which altemative (keep or drop the parquet product line) is now more cost effective and by how much? by $x