w Saved MSI is considering eliminating a product from its ToddleTown Tours collection. This collection is almed at children one to three years of age and includes tours" of a hypothetical town. Two products, The Pet Store Parade and The Grocery Getaway, have Impressive sales. However, sales for the third CD in the collection, The Post Office Polka, have lagged the others. Several other CDs are planned for this collection, but none is ready for production 3 MSI's Information related to the ToddleTown Tours collection follows: Segmented Income Statement for MSI's ToddleTown Tours Product Lines ed Sales revenue Variable costs Contribution margin Less: Direct Fixed costs Segment margin Less: Connon fixed costs Net operating income (loss) ok Pet Store Parade $115, eee 49,000 $ 66,eee 7,400 $ 58,600 5.750 $ 52,850 Post Office Polka $32,888 28,000 $ 4,689 3,800 $ 1, 1,600 $ (640 Gracery Getaway $110,00 45,00 $ 65,00 7,000 $ 58,000 5,500 $ 52,500 Total $257,000 122, eee $135,00 17,480 $117, see 12,85e $184,750 "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 ce 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. Regis Reg 2 Reg 3A Reg 38 Calculate the incremental effect on profit if the POP product is eliminated. Effect on Frofit Reg 2 > *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 $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. Reg 1 Req 2 Req 3A Req 3B Should MSI drop the POP product? Should MSI drop the POP product? Reg 1 Req 3A > . Prey of 8 Next > int *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. ences 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. Reg 1 Reg 2 Reg 3A Rel 38 Should MSI drop the POP product? Should MSI drop the POP product?