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Lakeside Incorporated produces a product that currently sells for $42 per unit. Current production costs...

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Accounting

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Lakeside Incorporated produces a product that currently sells for $42 per unit. Current production costs per unit include direct materials, \$11.5; direct labor, \$13.5; variable overhead, \$6.5; and fixed overhead, \$6.5. 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 $46 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

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