I need some help with this.

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 rm 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 rm might drop T-2 and sell only T-1. Barbour allocates xed 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. lfT-2 is dropped. sales of T-1 are expected to increase by 10% next year. but the rm's cost structure will remain the same. T1 T2 Sales $245 . our: $295. ooa Variable costs: Cost of goods sold 19.333 143.333 Selling & administrative 19.333 59.333 Contribution margin $147.333 $ 39.333 Fixed expenses: Fixed corporate costs 69.333 34.333 Fixed selling and administrative 21.333 33.333 Total fixed expenses $ 93.333 $114.333 Operating income $ 57.333 $l25.333} ' 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 T-1 have to increase in order to make up the nancial loss from dropping T-I2? [Enter your answer as a percentage rounded to 2 decimal places [i.e. 0.1234 should be entered as 12.34).) 3. What is the required percentage increase in sales from T1 to compensate for lost margin from T-2, if total fixed costs can be reduced by $53,000? [Enter your answer as a percentage rounded to 2 decimal places (Le. 0.1234 should be entered as 12.34\" . Required % increase in sales of T1 3. Required % increase in sales from T-1