Question: 1/ An incremental analysis indicates that Scott Industries could save money if a critical seal used in the manufacture of a product is purchased from

1/ An incremental analysis indicates that Scott Industries could save money if a critical seal used in the manufacture of a product is purchased from a supplier instead of made by Scott. Scott decides to continue making its own seals. Why would Scott decide not to purchase the seals if doing so saves money?

2/ An incremental analysis indicates that Neinten Company's VikMore segment is an unprofitable one. VikMore is a unique product that only three companies in the US manufacture. Should Neinten consider VikMore's unique nature in addition to the results of the analysis when deciding whether to retain or eliminate the segment? Why or why not?

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