Richard was a marketing major in college. He believes that sales volume can be increased only by intensive advertising and promotional campaigns. He therefore proposed the following plan as an alternative to Maria's: (1) increase unit variable selling expenses to $0.530, (2) lower the unit selling price by $0.30, and (3) increase fixed selling expenses by $42,000. Richard quoted an old marketing research report that said that sales volume would increase by 60% if these changes were made. Compute net income under Richard's proposal and the break-even point in sales dollars. (Round intermediate calculations to 2 decimal places, e.g. 15.25 and final answers to O decimal places, e.g. 2,520.) Amounts Net income $ Break-even point in sales tAThe condensed income statement for the Maria and Richard partnership for 2022 is as follows. Maria and Richard Company Income Statement For the Year Ended December 31, 2022 Sales (240,000 units) $1,200,000 Cost of goods sold 800,000 Gross prot 400,000 Operating expenses Selling $280,000 Administrative 154,300 434,300 Net loss $64,300) 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 $91,900 xed. (a)