MSI is considering eliminating a product from its Toddle 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 lagged the others. Several other CDs are planned for this collection, but none is ready for production. MSI's information related to the Toddle Town Tours collection follows Segmented Income Statement for MSI's ToddleTown Tours Product Lines Post Pet Store Grocery Office Parade _Getaway _Polka Total $150,000 $145,000 $39,000 $334,000 59,000 35,000 157,000 $87,00086,000 4,000 $177,000 3,700 21,600 $78.200 $ 76,900 300 $155,400 1,950 16,700 Sales revenue Variable costs Contribution margin Segment margin Net operating income (loss) 63,000 8,800 7,500 9,100 7,250 0 = $69,650 Less: Direct Fixed costs Less: Common fixed costs $(1,650) $138,700 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