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MSt is considering eliminating a product from its ToddieTown Tours collection. This collection is aimed at children one to three years of age and includes
MSt is considering eliminating a product from its ToddieTown Tours collection. This collection is aimed at children one to three years of age and includes "tours" of a hypothelical 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 coliection, but none is ready for production. MSis information related to the TodcleTown Tours collection foliows: 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 $2,000 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. Calculate the incremental effect on profit if the POP product is eliminated
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