Example $2$:

Halo Company has a factory that produces dog food. The company currently has $12,000$ bags of

dog food in inventory that it produced last year for $$312,000.$ This year's model is better than

last year's. The leftover $12,000$ units cannot be sold at last year's normal selling price of $$42\mathrm{.}00$

per bag. Halo Company has two alternatives for these units: $(1)$ They can be sold as is to a

wholesaler for $$260,000,$ or $(2)$ they can be processed further at an additional cost of $$20\mathrm{.}00$ per

bag and then sold for $$42\mathrm{.}00$ per bag.

Construct an incremental analysis regarding the sale of the old dog food or processing the

dog food further.

Would you recommend that the dog food be sold as is or processed further? Explain using an

Excel worksheet.