MSI is considering eliminating a product from its Toddlle Town 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. Howevet, sales for the third CD in the collection, The Post Office Polka, Ihave lagged the others. Several other CDs are planned for this collection, but none is neady for peoduction MSI's information related to the Toddle Town Tours collection follows Toddle Town Tours Product Lines Post Pet Stooe Grocery Otfice Patade Get 50.000 $145.000 PolkaTotal Sales revenue variable costs Contibution marg Segment margin Net operating income (oss) 63,000 50,000 35,000 157,000 S 87,000 86,000 4,000 $177,000 ,100 3,700 21600 5 78.200 3 76.900 300 3155.400 7,250 1,950 16,700 S T0,T00 00,050(1,650) $138T00 Less: Direct Fixed costs 8.800 Less: Common fixed costs 7,500 Allocated based on total sales dollars. MSI has determined that climination of the Post Office Polka (POP) program would not impact sales of the other two items. The remaining foxed averhead currently allocated to the POP product vwould be redistributed to the remaining tro products. Required: L. Calculate the incremental ettect on profit it the POP product is eliminaed 2. Should MSI drop the POP product? O Yes 3-a. Calodate the incremental efflect on profit if the POP product is eliminated. Suppose that $1,200 of the common foeed costs could be avoided if the POP product line were eliminated