Drop down options for #1. are Net income on discontinuing T-2 or Net loss on discontinuing T-2

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. \begin{tabular}{|l|l|l|l|} \hline 1. & & & \\ \hline 2. & Required % increase in sales from T-1 & & % \\ \hline 3. & Required % increase in sales from T-1 & & % \\ \hline \end{tabular}