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: less total variable costs of $250,000). All variable costs are relevant. line would reduce sales of the strip line by 26% 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? q For the plank line? q 2. Which alternative (keep or drop the parquet product line) is now more cost effective and by how much? by $ 
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