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first answer is incorrect, please ignore that MSI is considering eliminating a product from its ToddleTown Tours collection. This collection is aimed at children one

image text in transcribedimage text in transcribedfirst answer is incorrect, please ignore that

MSI is considering eliminating 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 The Grocery Getaway, have impressive sales. However, sales for the third CD in the collection, The Post Office Polka, have lagged the others. Several other CDs are planned for this collection, but none is ready for production MSI's information related to the ToddleTown Tours collection follows Segmented Income Statement for MSI's Toddle Town Tours Product Lines Pet Store Parade Grocery Post Office Getaway Polka Total $115,000 110,000 32,000 S257,000 28,000 122.000 $66,000 $ 65,000 4,000 $135,000 3,000 17,400 $58,600 58,000$1,000 $117,600 1,600 12,850 52850 52,500 (600S104.750 Sales revenue Variable costs Contribution margin Sege margin Net operating income (loss) 49,000 7.400 5,750 45,000 7,000 5,500 Less: Direct Fixed costs Less: Cormmon fixed cosls Allocated based on total sales dollars 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 Effect on Profit S52.032 Decrease

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