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Topic $7$ Assignment

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Lakeside Incorporated produces a product that currently sells for $$38$ per unit. Current production costs per unit include direct materials, $$10\mathrm{.}5$; direct labor, $$12\mathrm{.}5$; variable overhead, $$5\mathrm{.}5$; and fixed overhead, $$5\mathrm{.}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:

a$.$ What would be the incremental profit or loss if Lakeside could sell the refined version of its product for $$42$ 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?

$\backslash$table$[[$a$.$ Incremental Profit $($Loss$),],[$b$.$ Should it be processed further?,No$]]$