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Lakeside Incorporated produces a product that currently sells for $ 4 0 per unit. Current production costs per unit include direct materials, $ 1 1

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Lakeside Incorporated produces a product that currently sells for $40 per unit. Current production costs per unit include direct materials, $11; direct labor, $13; variable overhead, $6; and fixed overhead, $6. 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 $44 per
unit?
Note: Do not round your intermediate calculations. Round your final answer to 2 decimal places. Loss amounts
should be indicated with a minus sign.
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