Shown below is a segmented income statement for Hickory Company's three wooden flooring product lines:

Strip Plank Parquet Total

Sales revenue $$400,000$ $$200,000$ $$300,000$ $$900,000$

Less: Variable expenses $225,000120,000250,000595,000$

Contribution margin $$175,000$ $ $80,000$ $ $50,000$ $$305,000$

Less direct fixed expenses:

Machine rent $(5,000)(20,000)(30,000)(55,000)$

Supervision $(15,000)(10,000)(5,000)(30,000)$

Depreciation $(35,000)(10,000)(25,000)(70,000)$

Segment margin $$120,000$ $ $40,000$ $ $(10,000)$ $$150,000$

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 associated with this line include $80\%$ of parquet's machine rent and all of parquet's supervision salaries. In addition, assume that dropping the parquet product line would reduce sales of the strip line by $29\%$ 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?

$fill in the blank $1$

For the plank line?

$fill in the blank $2$

$2.$ Which alternative $($keep or drop the parquet product line$)$ is now more cost effective and by how much?

by $fill in the blank $4$