ACTIVITY BASED COSTING CASE Plastim Corporation manufactures lenses for the rear taillights of automobiles. Plastim has a contract with Giovanni Motors, a major automobile manufacturer, to make two types of lenses: a complex lens called \\( \\mathrm{C5} \\) and a simple lens called S3. Whether lenses are simple or complex, Plastim follows this sequence of steps to design, produce, and distribute them: - Design products and processes. Each year Giovanni Motors specifies details of the simple and complex lenses it needs for its new models of cars. Plastim's design department designs the new molds and specifies the manufacturing process to make the lenses. Manufacture lenses. The lenses are molded, finished, cleaned, and inspected. - Distribute lenses. Finished lenses are packed and sent to Giovanni Motors. At a recent meeting, Giovanni's purchasing manager informed Plastim's sales manager that Bandix, which makes only simple lenses, is offering to supply the \\( \\$ 3 \\) lens to Giovanni at a price of \\( \\$ 5