MSI is considering eliminating a product from Toase Town Tours coction This collection is aimed at children one to three years of age and includes oursofa h o n. Two products. The Pet Store Parade and The Grocery Gety, have impressive . However, for the Pad CD in the collection The Post Oto Pokhaveagged the Seven CDs are planned for his collection, but none is ready for production MSI's information related to the ToddleTown Tours collection follows: Segmented Income menor Pet Store Parade Grocery Cetaway Office Polka Variable Contribution margin Less Direct Fixed costs Segment margin Loss Common xed costs Net operating income poss) $57000 100 3 50200 5.000 345200 350.000 35.000 100 4700 17.500 0 00 3 300 5100.400 4.750 1450 145,150 $76150) $10 200 "Alocated based on total sales dollars MSI has determined that elimination of the Post Office Polka (POP) program would not impact sales of the other two items. The remaining faced overhead currently remaining two products located to the POP product would be redistried to the Required: 1. Calculate the incremental effect on profit if the POP product is eliminated Efecto Put 2. Should MSI drop the POP product? Yes No 3-a. Calculate the incremental effect on profit if the POP product is eliminat duct is eliminated. Suppose that $1000 of the comme could be avoided if the POP product line were eliminated Effect on Profit 3-b. Should MSI drop the POP product? Yes No