Randy Lightfoot is vice president of operations for MultiCo, Inc. He is responsible for the operations of the company's two manufacturing plants, one in Atlanta and one in St. Louis. Each plant has a manager who oversees the daily operations. During a recent review of operations for the year, prepared using absorption costing, Randy noted that the Atlanta plant reported net income and that the balance in finished goods inventory had grown significantly over the year. The St. Louis plant showed no net income, but its inventory fell over the year. According to MultiCo's policy, the Atlanta plant manager will receive a bonus this year based on the income generated at the plant; the St. Louis manager will not receive a bonus. Comment on Randy's observation. What conflicts are created when a company determines its managers' bonuses based on net income alone?