V1419 FBA

I just can't wrap my brain around doing an FBA on this. The attached sleeve is throwing me off. The line that is supposed to end about 1/3 into the arm hole...where should that one go? I don't want to change the angle or shape of the sleeve. Any ideas?

 

This is a picture of my pattern piece. I'm good with the blue lines....but I know the red line is wrong, where should it be?

 

Done