MSI is considering elminating a product from its Toddle Town Tours collection. This collection is aimed at children ane to three years of age and includes "curs' of a hypothetical town. Two products, The Pet Store Parade and the Grocery Getaway, have impressiv sales. However, salcs for the third CD in the collection The Post Office Polka, have lAgood the other, Several other CDs are planned for this collection, but none is ready for production MSI's information related to the Toddle Town Tours collection follows: Segmented Income Statement for MSI'S ToddleToan Tours Product Lines Pet Store Grocery c e Parade Getawy Polka Total Salas noverus $65,000 560 000 522.000 $147.000 Variable costs 29,000 25.000 14.000 68.000 Contribution margin $36,000 $35,000 $8.000 $ 79.000 Lees: Direct Fucd costs 3,400 4.000 4.200 13,600 $30,600 $31.000 1800 S 65.400 LASS: Common xodcasts 13.000 12.000 4400 29.400 Not operating income loss) 519,000 $ 10 $ 30,000 "Alocated based on total sales dolars. MSI has determined that Alimination of the Post Office Polka (POP) program would not impact sales of the other two items. The remaining feed overhead currently allocated to the POP product would be redistributed to the remaining two products Required: 1. Caculate the incremental effect on proht if the POP product is eliminated. Eladon 2. Should MSI drop the POP product 3-a. Calculate the increment fersan pafit if the POP produkt is imined SUN that $400 af the commerce costs could be avoided if the POP pacucline wireliminated Eladt an 3-b. Should MSI drop the POP product