A Activity-based costig isa costing method that is designed to provide managers with product co information for internal decision-making Which of the fallowing statement is true? In activity-based costing, all manufacturing eosts must be included in product costs. C Organination-sustaining activities relate to specific customers and are not tied to any specific products. D. Unit-level activities are performed each time a batch is handled or processed. E Activity-based costing is best proposed, designed and implemented by the accounting department without requiring the time of busy managers. 2 Annapolis Company has the capacity to produce 50,000 units but is currently selling only 40,000 unitsof a product at a price of $54.00 per unit. Unit costs at capacity are as follows: Variable manufacturing cost Variable Selling Fixed MOH (at capacity) $ 30.00 per unit $ 1.00 per unit 6.00 per unit $ 37.00 The variable manufacturing costs include costs of direct materials, direct labor, and variable manulactunng overhead. The company is interested in using its idle (excess) capacity and is seeking orders from foreign customers for which they are willing to accept a reduced price. Mumbia Inc. has expressed an interest in purchasing the product. Mumbia would like to buy 12,000 units (all or nothing) at a price of $40.00 per unit. These units would require some modification, which increases the variable cost per unit by $5.00, but there would be no variable selling expenses. The best course of action fom Annapolis is to: A. Reject Mumbia's offer because the price is lower than the regular price. Accept Mumbia's offer because their profit will increase by $14,000. B. Accept Mumbia's offer because their profit will increase by $74,000. C. Accept Mumbia's offer because their profit will increase by $2,000. D. E. None of the above HTO bond b