Question: please answer all 3 MSI is considering eliminating a product from its ToddleTown Tours collection. This collection is almed at children one to three years


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 MSI's Information related to the Toddletown Tours collection follows: Getaway Segmented Income Statement for MSI's ToddleTown Tours Product Lines Pet Store Grocery Parade Sales revenue 565,000 $60,000 Variable costs 29,000 25,000 Contribution margin $36,000 $35,000 Less: Direct Fixed costs 5.400 4,000 Segment margin $30,600 $31,000 Lussi Connon fixed costs 13,000 12,000 Net operating income (los) $17.600 319.000 Post Office Polka Total $22,000 $147,000 14,000 68,000 $ 8,000 $ 79,000 4.200 13,600 $ 3,800 $ 65,460 4,400 29,400 $ 600) $ 36,000 ces "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-o. Calculate the incremental effect on profit if the POP product is eliminated Suppose that $4.000 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. R1 Reg 2 Ron 3 Reg 3B Calculate the locremental effect on profit of the POP product is eliminated Eted on Prof MSI is considering ellminating 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 MSI's information related to the ToddleTown Tours collection follows: Segmented Income Statement for MSP Toddletown Tours Product Lines Pet Post Store Grocery Office Parade Getaway Polka Total Sales revenue 565,000 $60,000 $22,000 $147,000 Variable costs 29,000 25,000 14,000 68,000 Contribution margin $35,000 $35,000 $ 8,000 $ 79,000 Less Direct Fixed costs 5,400 4,000 4200 13600 Sementargin $30,000 $31,000 $3,000 $ 65,400 Less Common fixed costs 13,000 12,000 4.400 29 400 Het operating incon (loss) $17.600 $19,000 $600) 5 36.000 "Allocated based on total sales revenue MS vs determined that elimination of the Post Office Polka (POP) program would not impact sales of the other two items. The remaining ved overhead currently allocated to the POP product would be redistributed to the remaining two products, Required: 1. Calculate the incremental effect on profit of the POP product is eliminated 2. Should MSI drop the POP product? 3-o. Calculate the incremental effect on profil the POP product is eliminated Suppose that $4,000 of the common fixed costs could be avoided if the POP product line were eliminated 3-6. Should MSI drop the POP product? Complete this question by entering your answers in the tabs below. Rent Reg 2 Beg 3 Reg 35 Should MSI drop the DOP product? Should MSI drop the POP product? 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 MS's Information related to the Toddletown Tours collection follows. Segmented Income Statenent for MSI's ToddleTown Tours Product Lines Pet Store Grocery Parade Getaway Sales revenue $65,000 $60,000 Variable costs 29,000 25,000 Contribution martin 336,000 $35,000 Less Direct Fixed costs 5,400 4.000 Serent margin $30,600 331,000 List Common fixed costs 13,000 12.000 Net operating incone (loss) $17,600 $19,000 Post Office Polka Total $22,000 $147,000 14,000 68,000 3.8,000 $ 79,000 4,200 13,600 $3,800 $ 65,400 4,400 29,400 $600) $ 36,000 "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 ellminated 2. Should MSI drop the POP product? 3-o. Calculate the incremental effect on profit if the POP product is eliminated. Suppose that $4.000 of the common fixed costs could be avoided 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. peg 1 Reg2 Reg 3A Reg 30 Calculate the incremental effect on profit it the POP product is eliminated. Suppose that $4,000 of the common fixed costs could be welded if the OP product line were eliminated Efect on from
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