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: $50,000 (sales of $300,000 less total variable costs of $250,000 ). All variable costs are relevant. Relevant fixed costs assoclated with this fine include 80% of parquet's machine rent and alf of parquet's supervision salaries. in addition, assume that dropping the parquet product line would reduce sales of the strip line by 23% and sales of the plank line 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? s x For the plank line? s. 2. Which alternative (keep or drop the parquet product line) is now more cost effective and by how much? by $ x Feedback Theck My Work 1. Look at contribution margin and adjust for dropping product line. 2. Set up four columns. First column lists the income statement information starting with contribution margin. Second and alternatives, keep or drop, and list all amounts. Fourth column is the differential amount to keep