Lakeside Incorporated produces a product that currently sells for $74 per unit. Current production costs per unit include direct materials, $19.5; direct labor, $21.5; variable overhead, $14.5; and fixed overhead, $14.5. 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:

1. What would be the incremental profit or loss if Lakeside could sell the refined version of its product for $81 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.

1. Should it be processed further?