Businesses are always seeking ways to make sound financial business decisions. Whether a manager needs to determine if a product can be produced in-house or outsourced is just one example of the types of financial decisions businesses are often faced with that require careful analysis. In your managerial accounting class you learned about incremental analysis and how it can be used to make these types of decisions. To test your understanding of incremental analysis, your professor has asked you to explain the structure of incremental analysis and illustrate how it can be used by providing an example of its application.

Formulate a thoughtful response in 100250 words. Include at least one reference.