The condensed income statement for the Sandhill and Paul partnership for 2020 is as follows.

Sandhill and Paul Company Income Statement For the Year Ended December 31, 2020
Sales (270,000 units)				$1,350,000
Cost of goods sold				864,000
Gross profit				486,000
Operating expenses
Selling		$315,000
Administrative		175,500
				490,500
Net loss				$(4,500	)

A cost behavior analysis indicates that 75% of the cost of goods sold are variable, 42% of the selling expenses are variable, and 40% of the administrative expenses are variable.

Sandhill 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 $0.25 more per unit on better raw materials. The selling price per unit could be increased to only $5.25 because of competitive pressures. Sandhill estimates that sales volume will increase by 25%. Compute the net income under Sandhill's proposal and the break-even point in dollars.

Paul 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 Sandhills: (1) increase variable selling expenses to $0.59 per unit, (2) lower the selling price per unit by $0.25, and (3) increase fixed selling expenses by $43,000. Paul 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 Pauls proposal and the break-even point in dollars. (Round intermediate calculations to 4 decimal places, e.g. 15.2515 and final answers to 0 decimal places, e.g. 2,520.)

If someone could please help me figure out how the break-even analysis is calculated for Paul's calculation. I am very confused because I cannot get the number to be correct. I have gotten the net income calculation is $101,000.