The condensed income statement for the Barbara and William partnership for 2022 is as follows.

Barbara and William Company Income Statement For the Year Ended December 31, 2020
Sales (206,400 units)				$1,032,000
Cost of goods sold				688,000
Gross profit				344,000
Operating expenses
Selling		$258,000
Administrative		131,150
				389,150
Net loss				$(45,150	)

Barbara 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 $0.32 more per unit on better raw materials. The selling price per unit could be increased to only $5.25 because of competitive pressures. Barbara estimates that sales volume will increase by 25%. Compute the net income under Barbara's proposal and the break-even point in dollars. (Round intermediate calculations to 4 decimal places, e.g. 15.2515 and final answers to 2 decimal places, e.g. 15.25.)