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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, Feckory's parquet flooring product hine has a contribution margin of $50,000 (sales of: $300,000 less total varable costs of $250,000). All variable costs are relevant. Relevant fixed costs associated with this line include Bos, of parquet's machine rent and all of parquet's supervision salanies. In addition, assume that dropping the parquet product line would reduce sales of the stnp line by 23% and sales of the plank line by 205 . All other information remains the same. Required: 1. If the parquet product line is dropped, what is the contribution margin for the strip line? Hickory's management is decing whether to keep or drop the parquet product line. Hickory's parquet floaring product line has a contribution margin of 350,000 (cales at $300,000 less total variable custs of $250,000) : All variable costs are relevant. Relevant fixed costs associated with this line inchide 80% of parquet's machine reot and all of parquet's supervision salanes. In adistion, assume that dropping the parquet. product line would reduce sales of the strip line by 23% and sales of the plank line by 20%. Alt ofher information remains the same. Required: 1. If the parquet product line is dropped, what is the contribution imargin for the strp line? for the plank line? 2. Which alternative (keep or drop the parauet product line) is now more cost eflective and by how much? by 5 Determining the Optimal Product Mix with One Constrained Resautce and a Sales Constraint Casual Essentials, Ine manufactures two types of tearn shirts, the Hornecun and the Goalpost, with unct contribution margins of $5 and $15, respectively. Regardiess of type. each ream shirts must be fed through a stitching machine to affix the approgriate team logo. The firm leases seven machines that each provides 1,000 hours of machine time per year. Each Homerun shurt regures 6 minutes of machine time, and each. Goalpost thirt requires 30 minutes of machine time. Assume that a maximum of 49,500 unis of each team shurts can be sold. Pequired: If required, round your answers to the nearest whote number. 1. What is the controution margin pet hour of machine time for each type of team shats? 2. What is the optimal mix of team sherts? 3. What is the total contribution margin earned for the optinsal mix