Lakeside Incorporated produces a product that currently sells for $$60$ per unit. Current production costs per unit include direct

materials, $$16$; direct labor, $$18$; variable overhead, $$11$; and fixed overhead, $$11.$ 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 $$65$ 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.

b$.$ Should it be processed further?