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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

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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. MSl'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 thether two items. The remaining fixed overhead currently allocated to the POP product would be redistributed to the remaining tswo 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 $2,00 be avoided if the POP product line were eliminated. 3-b. Should MSI drop the POP product? Calculate the incremental effect on profit if the POP product is eliminated. Effect Should MSI drop the POP product? Should MSI drop the POP product? No Calculate the incremental effect on profit if the POP product is eliminated. Suppose that $2,000 of the cor could be avoided if the POP product line were eliminated. Effect on Profit Should MSI drop the POP product

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