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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

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.
b. Should it be processed further?
a. Incremental Profit (Loss)
b. Should it be processed further?
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