Ch 7 Probi Saved Help Save & Exit Submit 10 Check my work 3 ! Required information Part 3 of 4 1 points Segmented Income Statement for MSI'S ToddleTown Tours Product Lines Post Pet Store Grocery Office Parade Getaway Polka Total Sales revenue $115,000 $110,000 $32,000 $257,000 Variable costs 49,000 45,000 28,000 122,000 Contribution margin $ 66,000 $ 65,000 $ 4,000 $135,000 Less: Direct Fixed costs 7,400 7,000 3,000 17,400 Segment margin $ 58,600 $ 58,000 $1,000 $117,600 Less: Common fixed costs* 5,750 5,500 1,600 12,850 Net operating income (loss) $ 52,850 $ 52,500 $ (600) $184,750 03:51:04 eBook *Allocated based on total sales revenue. . Hint Print 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. References 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 3 Req 3B Mc Graw Hill