only need answers to the boxes

for number 1, the fill in could be either

"Net income on discontinuing T-2" OR "Net loss on discontinuing T-2" so pick one

3 Barbour Corporation, located in Buffalo, New York, is a retailer of high-tech products and is known for its excellent quality and Reconthe shfirm conducted a relevant cost analysis of product lir two products, T-1 and T-2. The t has only Innovai sales for T-2 are decreasing and the purchase costs are increasing. The firm might drop T-2 and sell only T-1. enty, the Barbour allocates fixed costs to products on the basis of sales revenue. When the president of Barbour saw the income statements LDa beuld b See Delow), ne agie i the sam ropped. If T-2 is dropped, sales of T-1 are expected to increase by 10% next year, but the remai firm's cost structure v T-1 T-2 $230,000 $284,000 Sales Variable costs: 142,000 56,000 86,000 Cost of goods sold 76,000 27,500 $126,500 Selling & administrative Contribution margin Fixed expenses: Fixed corporate costs Fixed selling and administrative Total fixed expenses 66,000 18,000 $ 84,000 81,000 27,000 $108,000 Operating income $(22,000) 42,500 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 financial loss from dropping T-2? (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 T-1 to compensate for lost margin from T-2, if total fixed costs can be reduced by $48,500? (Enter your answer as a percentage rounded to 2 decimal places (i.e. 0.1234 should be entered as 12.34).) 1 2. Required increase in sales of T-1 Required % increase in sales from T-1 3 %