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Barbour Corporation, located in, New York, is a retailer of high tech products and is known for its excellent quality and innovation. Recently the firm

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Barbour Corporation, located in, 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 statement he agreed that T-2 should be dropped. If this is done, sales of T-1 are expected to increased by 10% next year, the firm's cost structure will remain the same Find the expected charge in annual operating income by drooping T-2 and selling only T-1

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