expand its business to captalize on changes in the industry. The company currently has excess capacity and is investigoting several possible ways to improve profitability. E7.8 (Algo) Analyzing Keep-or-Drop Decision [LO 7-2, 7.5] MSI is considering eliminsting a product from its. ToddleTown Tours collection. This collection is aimed at children one to three years of age and includes "Tours" of a hypothetical town. Two products, The Pet Store Parade and Grocery Getaway, have impressive sales. However, soles for the third CD in the collection, Post Office Polka (POP, have lagged the others. Severat other CDs are planned for this collection, but none is ready for production. MSi's information related to the Toddlefown Tours collection follows: -Allocated based on total sales revenue. MSi has determined that elimination of the Post Office Polka (POP) program would not impoct sales of the other two items. The remaining fred 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. Calcutate the incremental effect on profit if the POP product is eliminated. Suppose that $1,200 of the common fixed costs could be avoided if the POP product Ine were eliminated 3.b. Should MSt drop the POP product? Complete this question by entering vour answers in the tabs below. Calcuivte the incremental effect on profit if the pop product is eliminated