The condensed income statement for the Kimberly and Gary partnership for 2022 is as follows. Kimberly and Gary Company Income Statement For the Year Ended December 31, 2020 Sales (302,400 units) Cost of goods sold Gross profit Operating expenses Selling Administrative Net loss: $378,000 192,150 $1,512,000 1,008,000 504,000 570,150 $(66,150) A cost behavior analysis indicates that 75% of the cost of goods sold are variable and 40% of the selling expenses are variable- Administrative expenses are $116,550 fixed. Gary 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 Kimberly's: (1) increase variable selling expenses to $0.575 per unit, (2) lower the selling price per unit by $0.25, and (3) increase fixed selling expenses by $64,260. Gary quoted an old marketing research report that said that sales volume would increase by 60% if these changes were made. Compute the net income under Gary's proposal and the break-even point in dollars. (Round intermediate calculations to 3 decimal places, e.g. 15.251 and final answers to O decimal places, e.g. 2,520.) Amount Net income $ Break-even point $