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 Grocery Getaway, have impressive sales. However, sales for the third CD in the collection, Post Office Polka (POP), 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: Sales revenue margin Variable costs Contribution Less: Direct Fixed costs Segment margin Less: Common fixed costs Net operating income (loss) Segmented Income Statement for MSI's: ToddleTown Tours Product Lines Pet Store Parade $110,000 47,000 $ 63,000 7,200 $55,800 5,500 Grocery Getaway $ 105,000 43,000 $ 62,000 6,700 $55,300 5,250 Total Post Office Polka $ 31,000 28,000 $246,000 118,000 $128,000 16,700 111,300 12,300 $3,000 2,800 $200 1,550 $ 50,300 $ 50,050 $ (-1,350) $ 99,000 "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