Includes "tour" to a homothetical town Two products The Dot Store Parade and Grocery (towaway have impressive sales 0 Required information MSI's information related to the Toddle Town Tours collection follows: Sales revenue Variable costs Contribution margin Less: Direct Fixed costs Segment margin Less: Common fixed costs* Net operating income (loss) Required 1 Segmented Income Statement for MSI's Toddle Town Tours Product Lines Pet Store Parade $ 120,000 51,000 $ 69,000 7,600 $ 61,400 6,000 $ 55,400

 Required 2 Effect on Profit Grocery Getaway *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 3A Required 3B Calculate the incremental effect on profit if the POP product is eliminated. $ 115,000 47,000 $ 68,000 7,300 $ 60,700 5,750 $ 54,950