ltive products. eBotiate with suppliers of unique and ibe an appropriate system of financial control at the regional level. ibe an appropriate system of financial control at the corpora in why the systems of financial control should or need not mesh corporate office leve 11-69 Assigning responsibil ssigning responsibility for uncontrollable events Some people and organizations believe that the discussion of controllable and uncontrollable events is distracting in the sense that it encourages finger-pointing and an excessive preoccupation with assigning blame. These observers argue tha is more important to find solutions than to identify responsibility for unacceptable or acceptable events t it lo you think of this argument? rganization moves away from assessing and rewarding controllable performance, anges would you expect to see in its organization structure? 11-70 New product opportunities and transfer pricing Plevna Manufacturing makes and distributes small prefabricated homes in kits. The kits contain all pieces needed to assemble the home. All that is required is t erect the home on a foundation. hat the builder Plevna Manufacturing is organized into two divisions: the manufacturing division and the sales division. Each division is evaluated on the basis of its reported profits. The transfer price between the manufacturing division, where the kits are made, and the selling divisi which sells the kits, is variable cost plus 10%, a total of about $33,000 The selling price per kit is about $40,000, and selling and distribution costs are about $5,000 per home kit The total costs that do not vary in proportion with volume at Plevna Manufacturing amount to about $2,000,000 per year: about $1,500,000 in manufacturing and about $500,000 in the selling division. The compa currently operating at capacity, which is dictated by the machinery in the manufacturing division. Each kit requires about 10 hours of machine time, and the total available machine time is 5,000 hours per year Manufacturing is making and selling about 500 kits per year. Inc plant capacity is not a viable option in the foreseeable future ny is Plevna reasing the Chapter 11 Financial Control 50