Which of the following statements are true? 1. If the activity level increases, then one would expect the fixed cost per unit to increase as well. 2. A fixed cost is a cost whose cost per unit varies as the activity level rises and falls. 3. A decrease in production will ordinarily result in a decrease in fixed production costs per unit. O Only statement III is true. O Only statement II is true. Statements I and III are true. O Statements I and Il are true