“Incremental analysis involves the examination of alternative choices, based on the cost differences between them. This analysis is solely concerned with the costs that will change if one alternative is selected over another. Any costs that do not change if either alternative is selected are ignored for the purpose of deciding which alternative to pursue. For example, costs that have already been incurred (known as sunk costs) are ignored. Also, if any type of cost will be incurred for both alternatives, then it also can be ignored.”(Bragg, 2019) “For example, a company receives an order from a customer for 1,000 units of a green widget for $12.00 each. The company controller looks up the standard cost for a green widget and finds that it costs the company $14.00. Of this $14.00, $11.00 is a variable cost and $3.00 is a fixed cost. Since the fixed cost is being incurred irrespective of the proposed sale, it is classified as a sunk cost and ignored. This means that the incremental cost of the widget is $11.00. The company should accept the order since it will earn $1.00 per unit sold, or $1,000 in total.” (Bragg, 2019) I would think after using this example to go on, incremental analysis sounds like price shopping to me. If I go to Target and see a pair of shoes for 14$. I then go to Walmart and see the same exact shoes for 13$. I would want to buy at Walmart because of the savings. I would end up keeping an extra dollar in my pocket by shopping at Walmart. Bragg, S. (2019, January 21). Incremental analysis.