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 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: "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 fived overtiead currently allocated to the POP product would be redistributed to the remaining fwo products. Required: 1. Calculate the incremental effect on profit if the POP product is ellminated. 2. Stiould MSI diop the POP product? 3-a. Calculate fhe incremental effect on profit if the POP product is eliminated. Suppose that 51,200 of the common fliced costs coult be avoided if the POP product line were eliminated. 3.b. Should MSi drop the POP broduct? "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 $1,200 of the common fixed costs could be avolded if the POP product line were eliminated. 3-b. Should MSI drop the POP product? Complete this question by entering your answers in the tabs below. Calculate the incremental effect on profit if the POP product is eliminated. 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? 3-0. Calculate the incremental effect on profit if the POP product is eliminated. Suppose that $1,200 of the common fixed costs could be avoided if the POP product line were eliminated. 3-b. Should MSI drop the POP product? Complete this question by entering your answers in the tabs below. Should MSI drop the POP product? 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 $1,200 of the common fixed costs cou be avolded if the POP product line were eliminated. 3-b. Should MSI drop the POP product? Complete this question by entering your answers in the tabs below. Calculate the incremental effect on profit it the POP product is ellminated, Suppose that $1,200 of the common fixed costs could be avoided if the POP product line were eliminated
