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Required information (The following intormation applies to the questions displayed below) Moming Sky, Inc. (MSI), manufactures and sells computer games. The company has several product lines based on the oge range of the target market. MSi sells both individual games as well as packaged sets. Al games are in CD format and some utilize accessories such as steering wheels, electronic tablets, and hand controls. To date, MSi has developed and manufactured all the CDs itself as well as the accessories and packaging for all of its products The gaming market has traditionally been targeted at teenagers and young adults, however, the increasing affordability of computers and the incorporation of computer activities into junior high and elementary school curriculums has led to significant increase in sales to younger children, MSi has always included games for younger children but now wants to expand its business to capitalize on changes in the Industry. The company currently has excess capacity and is Investigating several possible ways to improve profitability MSI is considering eliminating a product from its ToddleTown Tours collection. This collection is almed 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 logged 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: sented income statement for ME Toddletown Tours Product Line Fet Post Store Grocery ort Perde Datavyo Total sales revenue $75,000 $70,000 24,000 8169,900 Variable sota 21.000 29.000 39.000 31.000 Contribution margin $42.000 161.000 5.000 90,000 La Direct Fixed cost 5.000 4.600 4.600 15,000 Segment margin 336,200 $36.00 400 73.000 Lost Common fixed costa 7.500 2,000 2,400 16.900 Net operating incone love) 028.700 523,400 22.000 56/200 $ "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, 3-. Calculate the incremental effect on profit if the POP product is eliminated Suppose that $2.000 of the common feed costs could be avoided 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. Red Reg 2 Real Reg 30 Calculate the incremental effect on pronto the POP product eliminated Effect on Proti Reg 2 > 0 Required information The following information applies to the questions displayed below) Morning Sky, Inc. (MS), manufactures and sells computer games. The company has several product lines based on the age range of the target market. MSi sells both individual games as well as packaged sets. All games are in CD format, and some utilize accessories such as steering wheels, electronic tablets and hand control. To date. MS has developed and manufactured all the CDs itself as well as the accessories and packaging for all of its products The gaming market has traditionally been targeted at teenagers and young adults, however, the increasing affordability of computers and the incorporation of computer activities into junior high and elementary school curriculums has led to significant increase in sales to younger children. MSI has always included games for younger children but now wants to expand its business to capitalize on changes in the industry. The company currently has excess capacity and is Investigating several possible ways to improve profitability MSI is considering eliminating a product from its Toddie Town 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 tagged 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: Segeted Income Statisent for Toddletowe Tours Troduct Lies Pet Post to Grocery ottie Tarde Detay Polls Total Sale revenue 125,000 170.000 120,000 $16.000 Variable coste 33.000 29.000 19.000 1.000 Contribution margin $42.000 61,000 5,000 20,000 Less Direct Pined cota 3,000 4.600 15.000 Segrent margin 536,200 $36.400 406 $ 73,000 Less Common tiedot 3.500 27.000 2.400 16.900 Het operating income (1) $20.00023,00 52.00 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 fored 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? 32. 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? Complete this question by entering your answers in the tabs below. Reg Reg 2 Rea 3A Reg38 Should MSI drop the POP product Shodid MSI drop the POP product? Required information The following information applies to the questions displayed below! Morning Sky, Inc. (MS), manufactures and sells computer games. The company has several product lines based on the age range of the target market. MSi sells both individual games as well as packaged sets. Al games are in CD format and some utilize accessories such as steering wheels, electronic tablets, and hand controls. To date, MS has developed and manufactured all the CDs itself as well as the accessories and packaging for all of its products The gaming market has traditionally been targeted at teenagers and young adults; however, the increasing affordability of computers and the incorporation of computer activities into junior high and elementary school curriculums has led to significant increase in sales to younger children. MSi has always included games for younger children but now wants to expand its business to capitalize on changes in the industry. The company currently has excess capacity and investigating several possible ways to improve profitability 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 laged the others. Several other CDs are planned for this collection, but none is ready for production MS's information related to the ToddleTown Tours collection follows: Tegented Income Statement for Toddletown Tour Product Lines Pet ront store Groceryotice Parade Detay Polls Total Sales rave $75,000 570,000 $24,000 309,000 Variable coste 33,000 29.000 19,000 31.000 Contribution margin $42.000 $41,000 $ 5.000 90.000 Lors Direct Fixed coste 5.100 4.600 4.600 15.000 Senast margin 06.200 $36,400 $ 400 73.000 Last common sed coate 7.500 1.000 2.400 16.000 Nat operating income clos) 128.700 529.000 512.000 3156,100 *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 foed 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. 3-2. Calculate the incremental effect on profit if the POP product is eliminated. Suppose that $2.000 of the common feed costs could be avoided if the POP product line were eliminated. 3-6. Should MSI drop the POP product? Complete this question by entering your answers in the tabs below Real Reg 2 Rec 3 R38 Calculate the incremental effect on profit if the POP product is eliminated. Suppose that $2,000 of the commented costs could be avoided if the POP product line were eliminated Effect on Prul Reg2 Reg 0 > Required Information The following Information applies to the questions displayed below! Morning Sky, Inc. (MSI), manufactures and sells computer games. The company has several product lines based on the age range of the target market. MSI sells both individual gomes as well as packaged sets. All games are in CD format, and some utilize accessories such as steering wheels, electronic tablets, and hand controls. To date, MSI has developed and manufactured all the CDs itself as well as the accessories and packaging for all of its products. The gaming market has traditionally been targeted at teenagers and young adults; however, the increasing affordability of computers and the incorporation of computer activities into junior high and elementary school currculums has led to a significant increase in sales to younger children. MSI has always included games for younger children but now wants to expand its business to capitalize on changes in the industry. The company currently has excess capacity and is Investigating several possible ways to improve profitability MSI is considering eliminating a product from its ToddleTown Tours collection. This collection is almed at children one to three years of ago and includes "ours" of a hypothetical town. Two products, The Pet Store Parade and The Grocery Getaway, have impressivo 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 throne Statement for MST Toddletown Tours Product Lines Fet Post Store Grocery orice Parade Get Pola Total Sales revenge $75,000 670,000 026,000 169.000 Variable sota 33.000 29.000 19.005 01.000 Contribution margin $42.000 541.000 $3,000 S 80,000 Less Direct Pixed costs 3,800 4,600 15.000 Segnent margin 536,200 936,400 $ 400 9 7),000 Less Common fixed conta 7.500 2.000 2.000 16,900 Het operating income (los) 520,700 322,400 $12.000) 3 56.100 4.600 "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-. Calculate the incremental effect on profit of 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? Complete this question by entering your answers in the tabs below. Rea 1 Reg 2 ReQ 3A Reg38 Should MSI drop the POP product? Should MSI drop the POP product?