Warriner Equipment Company, in Karratha, Western Australia, manufactures heavy construction equipment. The company's primary product, a powerful bulldozer, is among the best produced in the Asia-Pacific region. The company operates in a very price-competitive industry, so it has little control over the price of its products. It must meet the market price. To do so, the firm has to keep production costs in check by operating as efficiently as possible Mathew Basler, the company's CEO believes that to be successful the company must provide a very high quality product and meet its delivery commitments to customers, on time. Warriner Equipment Company is organised as shown below. Warriner Equipment Company Chief executive officer Manufacturing division Divisional manager Sales division Divisional manager 10 Manufacturing plants 5 Sales districts There is currently a disagreement between the company's two divisional managers regarding the responsibility accounting system. The manufacturing divisional manager claims that the 10 plants should be cost centres because the plant managers do not control the sales of the products. He believes that designating the plants as profit centres would result in holding the plant managers responsible for something they cannot control. The manager of the sales division holds the contrary position. In his view, the plants should be profit centres because the plant managers are in the best position to affect the company's overall profit Required As the company's new financial controller, you have been asked to make a recommendation to Mathew Basler regarding the responsibility centre issue 3. What type of responsibility unit is most appropriate for the company's sales districts? 4. Suppose that Warriner Equipment often receives rush orders from its customers. Which of the two proposed types of responsibility accounting arrangement is best suited to making decisions about accepting or rejecting rush orders? Does this influence you to change your recommendation about whether the plants should be cost centres or profit centres? Explain your