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: Segmented Income statement for MSI'S Toddletown Tours Product Lines pet store Grocery Parade Getty sales revenue $185,000 $108,098 Variable costs contribution margin $ 60,000 $ 59,000 Less: Direct Fixed costs 2.000 6,400 Segment margin $ 53,000 $ 52,600 Less: Comon fixed costs 5,25 Net operating Incore (loss) $ 47,750 $ 47,608 Post Office Polka Total $3e,eee $235,000 25,000 $5,000 $124,000 4, 10.200 2ee $105,800 1,500 $(1,388) $ 94, ese "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 of 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 ellminated. Suppose that $1,000 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. Req: Req3A Raq 30 Reg2 Calculate the incremental effect on profit if the POP product is eliminated. Effect on Profil Reg 1 Reg 2 Reg 3A Reg 30 Should MSI drop the POP product? Should MSI drop the POP product?