Required information segmented Income statement for MSI's ToddleTown Tours Product Lines Pet Store Grocery Parade Getaway Post office Polka Total Sales revenue $90,000 $85,000 $27,000 $202,000 Variable costs 39,000 35,000 22,000 96,000 Contribution margin $51,000 $50,000 $ 5,000 Less: Direct Fixed costs 6,400 Segment margin $44,600 5,500 $44,500 4,500 $106,000 16,400 Less: Common fixed costs. Net operating income (loss) 9,000 $35,600 8,500 $ 500 2,700 $ 89,600 20,200 $36,000 $(2,200) $ 69,400 "Allocated based on total sales revenue. MSI has determined that elimination of the Post Office Polka (POP) program would not impact sales of the other two items. The remaining fixed overhead currently allocated to the POP product would be redistributed to the remaining two products. 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 $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. Req 1 Req 2 Req 3A Req 38 Calculate the incremental effect on profit if the POP product is eliminated. Effect on Profit < Prev 0 67 of 10 Next > Help Save & Exit Check m