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  3. \table[[segmented income statement for msi's,],[to

\table[[Segmented Income Statement for MSI's,],[ToddleTown Tours Product Lines,]] *Allocated based on total sales...

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Accounting

\table[[Segmented Income Statement for MSI's,],[ToddleTown Tours Product Lines,]]
*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:
Calculate the incremental effect on profit if the POP product is eliminated.
Should MSI drop the POP product?
3-a. Calculate the incremental effect on profit if the POP product is eliminated. Suppose that $2,000 of the common fixed costs could be avoided if the POP product line were eliminated.
3-b. Should MSI drop the POP product?
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