Barbour Corporation, located in Buffale, New York, is a retailer of high tech products and is known for its excellent quatity and innovation. Recently, the firm conducted a resevant cost analyas of one of its product unes that has ony two products, T-T and T-2. The sales for T-2 are decreasing and the purchase costs are increasing. The firm might drop T-2 and sell only T-1 Barbour allocates fixed costs to products on the basts of sales revenue. When the president of Barbour saw the income statements (see below, he agreed that T-2 ihould be dropped. If T-2 is dropped, sales of T-1 are expected to increase by to percent next year, but the firmin cost structure will remain the same. Required: 1. Find the expected change in annual operating income by dropping T-2 and sesing only T-1. 2 By what percentage would sales from T-1 have to increase in order to make up the financal loss from dropping T-2? (Enter your enswer as a percentoge rounded to 2 decimal pioces (Le. 0.1234 should be entered os 12.34)) 3. What is the requred percentape increase in sases fiom T-1 to compensate for lost margin from T-2, if tota foxed costs can be reduced by 545,000 ? (Enter your answer at a percentoge rounded to 2 decimal places (Le. 0.1234 should be entered as 1234 )