Abstract
In March 1967, a financial analysis conducted by Crosby Sanberg revealed a significant outcome: the principles that were learnt at business schools need not necessarily work practically all the time. The study was related to incremental analysis. Generally, some costs are considered to be not relevant (sunk costs) for the capital project evaluations, but Sanberg was convinced of the contrary. He decided to illustrate his theory by launching "The Super-Project" to the U.S. and foreign markets. "Super was a new instant dessert, based on flavored, water-soluble, agglomerated powder". This was the essence of the product's description. The capital request for this project was $ 200 000, and $ 80 000 were allotted for modification of the building. There is no cost for the production because it took place in an existing building. In this building Jell-O was produced by using the available space of the pre-existing Jell-O agglomerator.
