ssignmentMain.do?invoker assignments&itakeAssignmentSessionLocator-assignment-take8inprogress false Video Calculator Strip Plank Parquet Total Sales revenue Less: Variable expenses Contribution margin Less direct fixed expenses: $400,000 $200,000 120,000 $175,000 80,000 300,000 $900,000 250,000 $50,000 $305,000 595,000 Machine rent (15,000) (35,000) 120,000 (20,000) (10,000) (10,000) 40,000 (50,000) (20,000) ( (25,000) (75,000) (45,000) (70,000) $115,000 Segment margin s (45,000) hickory's management is deciding whether to keep or drop the parquet product line. Hickory's parquet nooring product line has contribution margin of $50,000 (sales of $300,000 less total variable costs of $250,000). All variable costs are relevant. Refevant fixed costs associated with this line include $30,000 in machine rent and $4,700 in supervision salaries. Required 1. List the alternatives being considered with respect to the parquet flooring line. Drop the parquet flooring line or keep it w 2. Which alternative is more cost effective and by how much Keep by $ 10,000 X 8 5