MSI is considering eliminating a product from its Toddletown Tours collection. This collection is almed at children one to three years of age and includes tours of a hypothetical town. Two products, The Pet Store Porade and The Grocery Getaway, huve impressive sales. However, sales for the third CD in the collection, The Post Office Polka, have logged 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: Semented Income Statement for MSI ToddleTown Tours Product Lines Pet Post Store Grocery Office Parade Getaway Polka Total Sales revenue $50,000 $45,000 $15,000 $110,000 Variable costs 23,000 19,000 10 000 $2.000 Contribution margin $27,000 $26.000 $5,000 $ 58,000 Less: Direct Fixed costs 4.300 3.100 11,400 Segment margin $22,200 $22,900 $1,500 $ 46,500 Less: Common fixed costs 14,100 12,50 31,600 Het operating income (loss) $9.940 $(2,620) $14,220 "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, 3.500 4,120 Efect on Profil 3-o. Calculate the incremental effect on profit if the POP product is eliminated. Suppose that $3.700 of the common fixed costs could be avoided if the POP product line were eliminated Eden Prote