Mini-Exercise 16-1 (Static) Sell or process further? LO 2, 3 Lakeside Inc. produces a product that currently sells for $36 per unit. Current production costs per unit include direct materials, $10; direct labor, $12; variable overhead, $5; and fixed overhead, $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 $40 per unit? (Round your final answer to 2 decimal places. Loss amounts should be indicated with a minus sign.) Incremental Profit (Loss) b. Should it be processed further? Yes No