arbour Corporation, located in Buffalo, New York, is a retailer of hightech products and is known for its excellent quality and nnovation. Recently, the firm conducted a relevant cost analysis of one of its product lines that has only two products, T1 and T2. The ales for T2 are decreasing and the purchase costs are increasing; The firm might drop T2 and sell only T1. arbour allocates fixed costs to products on the basis of sales revenue; When the president of Barbour saw the income statements see below), he agreed that T2 should be dropped. If T2 is dropped, sales of T1 are expected to increase by 10 percent next year, but he firm's cost structure will remain the same. T-l T-Z Sales 3 220,000 $ 276,000 Variable costs: Cost of goods sold 74,000 138,000 Selling & administrative 25,000 54,000 Contribution margin 3 121,000 $ 84,000 Fixed expenses: Fixed corporate costs 64,000 79,000 Fixed selling and administrative 16,000 25,000 Total fixed expenses $ 80,000 $ 104,000 Operating income $ 41,000 $ (20,000) equired: . Find the expected change in annual operating income by dropping T2 and selling only T1. . By what percentage would sales from T-1 have to increase in order to make up the financial loss from dropping T2? (Enter your nswer as a percentage rounded to 2 decimal places (i.e. 0.1234 should be entered as 12.34).) . What is the required percentage increase in sales from T1 to compensate for lost margin from T2, if total fixed costs can be educed by $45,500? (Enter your answer as a percentage rounded to 2 decimal places (i.e. 0.1234 should be entered as 12.34).) Required % increase in sales from T1 Required % increase in sales from T1