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.
Eliminating the overhead pop doing away with the pop program would allow for that money to divided into the other two items. This extra overhead would allow for extra overhead money, which would mean more profit.