MSI is considering eliminating a product from its Tod town. Two products, The Pet Store Parade and The( the others. Several other CDs are planned for this co MSI's information related to the ToddleTown Tours c Segmented Income Stater ToddleTown Tours Pr Pet Store Parade Sales revenue Variable costs $ 100,00 43,000 $57,00 6,800 $ 50,20 5,00 $ 45,20 Contribution margin Segment margin Net operating income (loss) Less: Direct Fixed costs Less: Common fixed costs Allocated based on total sales dollars MSI has determined that elimination of the Post Off POP product would be redistributed to the remainin Required: 1. Calculate the incremental effect on profit if the P product from its Toddle Town Tours collection. This collection is a ore Parade and The Grocery Getaway, have impressive sales. Ho e planned for this collection, but none is ready for production. Toddle Town Tours collection follows: mented Income Statement for MSI's Toddle Town Tours Product Lines Pet Store Parade Grocery Post Office Getaway Polka Total S 100,000 $95,000 29,000 $224,000 24,000 106,000 43,000 $ 57,000 56,000 $5,000 $118,000 6,800 6,100 39,000 4,700 17,600 50,200 49,900 300 $100.400 1,45011,200 S 45,200 S 45.150 1.150) S 89,200 5,000 4,750 llars on of the Post Office Polka (POP) program would not impacts ed to the remaining two products on profit if the POP product is eliminated imed at children one to three years of age and includes "tours" of owever, sales for the third CD in the collection, The Post Office Pol es of the other two items. The remaining fixed overhead currently e years of age and includes 'tours" of a hypothetical D in the collection, The Post Office Polka, have lagged he remaining fixed overhead currently allocated to the lColleg Orade | PeopleSoft B Allocated based on total sales dollars MSI has determined that elimination of the Post Office Polka (POP) progra POP product would be redistributed to the remaining two products. Required: 1. Calculate the incremental effect on profit if the POP product is eliminate . Should MSI drop the POP product? Yes No -a. Calculate the incremental effect on profit if the POP product is ellminate lminated here to search 3-a. Calculate the incremental effect on profit if the PO ellminated ect Profi on 3-b. Should MSI drop the POP product? O Yes Hinte tpx?-0.818636261974698 1555851203278 oflt if the POP product is ellminated. Suppose that $1,000 of the cor ,000 of the common fixed costs could be avoided If the POP product line were