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Answer the highlighted. 1 2- Keep-or-Drop Decision Charlevoix Company produces three products: Torch, Elk, and Walloon. A segmented income statement, with amounts given in thousands,
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Keep-or-Drop Decision Charlevoix Company produces three products: Torch, Elk, and Walloon. A segmented income statement, with amounts given in thousands, follows: 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: This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. x Open spreadsheet Required: 1. If the parquet product line is dropped, what is the contribution margin for the strip line? 161,500 For the plank line? 74,700 2. Which alternative (keep or drop the parquet product line) is now more cost effective and by how much? Keep by 1,059,000 Feedtsack Theck My Work 1. Look at contribution margin and adjust for dropping product lineStep by Step Solution
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