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, T$-1$ 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 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.

$\backslash$table$[[$Sales$,$T$-1,],[$Variable costs:,$$245,000,$$$296,000$