"Allocated based on total sales revenue. MSI has determined that elimination of the Post Office Polka (POP) program would not impact sales of the other two items. The remaining fixed overhead currently allocated to the POP product would be redistributed to the remaining two products. Required: 1. Calculate the incremental effect on profit if the POP product is eliminated 2. Should MSI drop the POP product? 3-a. Calculate the incremental effect on profit if the POP product is eliminated. Suppose that $2,000 of the common fixed costs could be avoided if the POP product line were eliminated 3-b. Should MSI drop the POP product? MSI'S information related to the ToddleTown Tours collection follows: Pet Segmented Income Statement for MSI'S FoddleTown Tours Product Lines Post Store Grocery Office Parade Getaway Polka Total Sales revenue $75.000 370,000 $24,000 $169,000 Variable costs 33 000 29,000 19,000 81,000 Contribution margin 542,000 $41,000 $5,000 $ 88,000 Loui Direct Fixed costs 5,800 4,600 15,000 Segment margin $36,200 $36,400 $ 400 $ 73,000 Less Common fixed costs. 7,500 7.000 2,400 16,900 Net operating Income (los) $28,700 $29,400 $2,000) $ 56,100 "Allocated based on total sales revenue. MSI has determined that elimination of the Post Office Polka (POP) program would not impact sales of the other two items. The remaining fixed overhead currently allocated to the POP product would be redistributed to the remaining two products