Lakeside Inc. produces a product that currently sells for $48.60 per unit. Current production costs per unit include direct materials, $17; direct labor, $19; variable overhead, $8.50; and fixed overhead, $8.50. Product engineering has determined that certain production changes could refine the product quality and functionality. These new production changes would increase material and labor costs by 20% per unit. Required: a. What would be the incremental profit or loss if Lakeside could sell the refined version of its product for $54 per unit? (Round your final answer to 2 decimal places. Loss amounts should be indicated with a minus sign.)

B. Should it be processed further?

• Yes

• No