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Required: 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

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Required: 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 $1,200 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. Suppose that $1,200 of the common fixed costs could be avoided if the POP product line were eliminated. Required: 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 $1,200 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. Should MSI drop the POP product? Required informetion E7.6 through E7-9. The followirg inilormabon apolies to the questions displayed bejow? Morning 5ky, Incorpocated (MST) manufactutes and selis computer games. The company has seweral product ines based on the age rance of the larget market MSt sells both indivafual pames as well as packaped sets. All pames afe h CD format, and some-ubize accessories such as steering wheels, electronic tabiets, and hand controls. To date, MSI has developed and manufactured all the CDs itself as well as the accessones and packoging foe all of its products. The garring makket has traditionally been targeted at teenagers and young advils; howevec, the increasing affardabity of computers and the incorporatien of computer activies into junior high arsd elementary schoof curticulums has led to a significant increase in sales to younger chidren MSt has ahwars inciuded games for younger chidren but now wants to expand its business to caphalize on changes in the industry. The company curently has expess capacily and is investigating several powsible ways to improve peofitability. E7-8 (Algo) Analyzing Keep-or-Drop Decision [LO 7-2, 7.5] MSI is considering eliminating a product from as Toddle Town Tours collectoon. This collection is aimed at children one to three years of age and includes "tours" of a hypothetical town Two peoducts. The Pet Store Parade and Grocery Getaway, have imprestive sales. this colection, but none is ready for production MSt's information related to the Toddletown Tours collection follows: "Allocated based on total sales reveoue

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