Barbour Corporation, located in Buffalo, New York, is a retailer of high-tech products and is known for its excellent quality and Innovation. Recently, the firm conducted a relevant cost analysis of one of its product lines that has only two products. T1 and 1-2. 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 basis of sales revenue. When the president of Barbour saw the income statements (see below), he agreed that T-2 should be dropped. If T-2 is dropped, sales of T-1 are expected to increase by 10 percent next year, but the firm's cost structure will remain the same T-1 $ 235, 52.ee Sales Variable costs: Cost of goods sold Selling & administrative Contribution sargin Fixed expenses Fixed corporate costs Fixed selling and administrative Total fixed expenses Operating income 77.00 17. 3.141. 144.00 57. 52.0 19. . 25.00 $ 21.00 Required: 1. Find the expected change in annual operating income by dropping T-2 and selling only T-1 2. By what percentage would sales from T1 have to increase in order to make up the financial loss from dropping T-22 (Enter your answer os o percentage rounded to 2 decimal places (L. 0.1234 should be entered as 12.34).) 3. What is the required percentage increase in sales from T-1 to compensate for lost margin from T-2. If total fed costs can be reduced by 550.0002 (Enter your answer os e percentage rounded to 2 decimal places (.e. 0.1234 should be entered as 12.34):) 1 Platos con T-2 Retreats from Pored ram Tot 3 95.000 B7 23