Sarah Jones, the cost accountant for Tampa Bay Scooter Company, recently installed activity-based costing2 at the Lakeland plant where three models, the 10 MPH horsepower City Explorer, the 20 MPH Commuter, and the 30 MPH horsepower Sprinter, are manufactured. Sarah's new product costs for those three models show that the company's traditional costing system had been significantly under costing the 10 MPH City Explorer model. This was due primarily to the lower sales volume of the City Explorer compared to the Commuter and the Sprinter. Before completing her analysis and reporting these results to management, Sarah is approached by her friend Don Hudson, who is the production manager for the 10 MPH City Explorer model. Don heard from one of Sarah's staff about the new activity-based product costing system and is upset and worried for his job because the new costing method shows the City Explorer model to be losing, rather than making, money. At first, Don condemns the new cost system, whereupon Sarah explains the practice of activity-based costing and why it is more accurate than the company's present system. Even more worried now, Don begs Sarah, "Massage the figures just enough to save the line from being discontinued. You don't want me to lose my job do you? Anyway, nobody will know." Sarah holds firm but agrees to recompute all her calculations for accuracy before submitting her costs to management. Instructions: You are required to provide answers to the following questions addressing all the points outlined in the questions using the facts stated above as well as the IMA Statement of Ethical Professional Practice. (a) Provide answers to the following questions using full grammatically correct sentences and paragraphs. Ensure that your response is in a professional tone. (b) What are the over-riding principles that management accountants are held to under the IMA Statement of Ethical Professional Practice and why are they important? (c) Who are the stakeholders that are affected by Sarah's actions? Be specific and indicate how they are impacted (positively or negatively) and why.