Lakeside Incorporated produces a product that currently sells for $54 per unit. Current production costs per unit include direct materials, $14.5; direct labor, $16.5; variable overhead, $9.5; and fixed overhead, $9.5. 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:

What would be the incremental profit or loss if Lakeside could sell the refined version of its product for $59 per unit?

\begin{tabular}{|l|l|} \hline a. Incremental Profit (Loss) & No \\ \hline b. Should it be processed further? \\ \hline \end{tabular}