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Business, 22.01.2020 21:31 DerekMoncoal

Structuring a keep-or-drop product line problem 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 225,000 120,000 250,000 595,000 contribution margin $175,000 $ 80,000 $ 50,000 $305,000 less direct fixed expenses: machine rent (5,000) (20,000) (50,000) (75,000) supervision (15,000) (10,000) (20,000) (45,000) depreciation (35,000) (10,000) (25,000) (70,000) segment margin $120,000 $ 40,000 $ (45,000) $115,000 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 $30,000 in machine rent and $4,700 in supervision salaries. required: 1. list the alternatives being con

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