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 "ours" 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 ToddleTown Tours collection follows: Segmented Income Statement for MSI'S Toddlotown Tours Product Lines Post Pet Store Grocery office Parade Getaway Polka Total Sales revenue $ 60,000 $ 55,000 $ 21,000 $136.000 Variable costs 27.000 23,000 15,000 65,000 Contribution margin $ 33.000 5 32,000 6,000 $ 71,060 Less: Direct Fixed costs 5,200 3.700 13,000 Segment margin 27.800 28,300 $ 1,900 $ 58,000 Lost Common fixed coats 12,000 11.000 4,200 27,200 Het operating income 15,100 $ (losa) 17,300 > (2,300) 5 30,800 4.100 "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 2. Should MSI drop the POP product? 3-a. Calculate the incremental effect on profit if the POP product is eliminated. Suppose that $2,500 of the common fixed costs could be avoided if the POP product line were eliminated 3-b. Should MSI drop the POP product