Please also show the detailed solution/ method (Step by step), thank you!

Barbour Corporation 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% next year, but the rm's cost structure will remain the same. Tl T-2 Sales 5 270,000 $ 316,000 Variable costs: Cost of goods sold 84,000 158,000 Selling & administrative 37,500 64,000 Contribution margin $ 148,500 $ 94,000 Fixed expenses: Fixed corporate costs 74,000 89,000 Fixed selling and administrative 26,000 35,000 Total fixed expenses S 100,000 $ 124,000 Operating income $ 48,500 $ (30,000) 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 T1 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 xed costs can be reduced by $49,500? (Enter your answer as a percentage rounded to 2 decimal places (i.e. 0.1234 should be entered as 12.34).) Questions: 1. Net income on discontinuing T-2 or Net loss on discontinuing T-2 ? And how much is it? 2. Required % increase in sales of T-1, how many % ? 3. Required % increase in sales fromT-1, how many %