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Barbour Corporation, located in Buffalo, New York, is a retaller 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 fored 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. Required: 1. Find the expected change in annual operating income by dropping T-2 and seiling only T-1 2. By what percentage would sales from T.1 have to increase in order to make up the financial foss from dropping T.2? (Enter your onswer as a percentoge rounded to 2 decimal places (l.e. 0.1234 should be entered os 12.34).). 3. What is the required percentage increase in sales from T-1 to compensate for lost margin from T-2 if fotal fixnd cosis can be. reduced by $41,0003 (Enter your answer as o percentage rounded to 2 decimal places (i.e. 0.1234 should be entered os 12.34 ).)

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