formation MSI is considering eliminating a product from its Toddle Town Tours collection. This collection is aimed at children one to three years of age and includes Tours of a hypothetical ACGT 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 Poka, have lagged the others. Several other CDs are planned for this collection, but none is ready for production MSI's information related to the Toddie Town Tours collection follows: HTMT 362 Segmented income Statement for MSI's ToddleTown Tours Product Lines Post Pet Store Grocery Office Parade Getaway Polka Total MGMT JOT Sales revenue $56.000 $50.000 $120.000 $125.000 Variable costs 25,000 21.000 15.000 61.000 Contribution margin $30.000 $29.000 $5,000 $ 64,000 Less: Direct Fixed costs 5,000 3.400 4000 12 400 Segment margin $25.000 $25.600 $ 1.000 $ 51.000 Less: Common foxed costs 14,080 12.800 5120 32.000 Net Operwing income (los) $10.020 $12.00 $14.120) 5 19.600 MFP Alocated based on total sales dollars MSI has determined that emination of the Post Office Polka (POP) program would not impact sales of the other two item. The remaining fie overhead cumenty located to the POP product would be redistributed to the remaining two products Required: 1. Calculate the incremental elect on profit the POP product is eliminated MacBook Air 282 15 . 1 0 $ & 7 % 5 9 8 4 6 2. Should MSI drop the POP product? Yes No 3-a. Calculate the incremental effect on profit if the POP product is eliminated Suppose that $4.000 of the common fixed costs could be avoided me POP product in were eliminated Elte ori Profit 3-b. Should Mst drop the POP product? Yes No