I could really use some help on questions 1,2,3a and 3b
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: Dagmented Income statement for MSIB Toddletown Tours Productos Pet Store Parade 595,000 41.000 558,000 sales revenge Variable costs Contribution margin Less Direct Fixed both Segment margin Less Comen fixed costs Tiet operating income on) Grocery Getaway 590,000 37.000 553,000 5.000 5672200 9,000 $3200 Post Orice rolka Total $28,000 $213,000 23,000 101,000 5,000 $112.000 4.600 17.000 400 95,000 2,800 21.300 12.490 3700 547,400 9.500 $32.900 "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, "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 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 tabu below. Reg 1 Rea 30 2 RA Calculate the incremental effect on profit if the POP product is eliminated Toton Pro Reg 2 > ! Required information 4 2. Should MSI drop the POP product? 3-a. Calculate the incremental effect on profit if the POP product is 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 Reg 1 Reg 2 Req Req 3B Should MSI drop the POP product? ces Should MSI drop the POP product? Required information 2. Should MSI drop the POP product? 3-a. Calculate the incremental effect on profit if the POP product is elir 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 bel- Req 1 Req 2 Req Req 3B Should MSI drop the POP product? es Should MSI drop the POP product
