A cost behavior analysis indicates that 75% of the cost of goods sold are variable and 42% of the selling expenses are variable. Administrative expenses are $92,000 fixed. units Helen has proposed a plan to get the partnership "out of the red" and improve its profitability. She feels that the quality of the product could be substantially improved by spending $0.37 more per unit on better raw materials. The unit selling price could be increased to $5.25. Helen estimates that sales volume would increase by 25%. Compute net income under Helen's proposal and the break-even point in sales dollars. (Round intermediate calculations to 2 decimal places, e.g. 15.25 and break-even point in sale to 2 decimal places, e.8. 2,520.25.)