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 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 Toddle Town Tours collection follows: Segmented Income Statement for MSI's Toddle Town Tours Product Lines Post Pet Store Grocery Office Polka Parade Tota Sales revenue Variable costs $135,000 $130,000 $36,000 $301,000 53,000 32,000 142,000 77,000 $ 4,000 $159,000 3,400 19,800 S 69,800 S 68,800 S 600 $139,200 1,800 15.050 57,000 78,000 8,200 Contribution margin Segment margin Net operating income (loss) Less: Direct Fixed costs Less: Common fixed costs 6,750 63,050 62 300 $(1.200) $124.150 1,200) $124,150 Allocated based on total sales dollars. 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 Effect on Profit