E7-8 (Algo) Analyzing Keep-or-Drop Decision [LO 7-2, 7-5] MSt is considering eliminoting a product from its Toddiefown Tours collection. This collection is aimed at children ono to three years of age and includes "tours" of a hypothetcal town. Two products, The Pet Store Parade and Grocery Getaway. have impressive sales. Howevec, sales for the third CD in the collection, Post Ofice Polka (POP), hove lagged the others. Several other CDs are planned for this collection, but none is ready for production. MSr's information related to the Foddietown fours collection follows: "Alocated bosed 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 alocated 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 $1,000 of the common foced costs could be ovoided if the POP product line were eliminated 3-b. Should MSI drop the POP product? Complete this question by entering your answers in the tabs below. Calnilate tha incremental effect an arofe if the pop nundiurt ik aliminatad