the lowest quotation for 8 000 cisco units from a supplier is 83 231 321049

All variable manufacturing and direct fixed costs will be eliminated if CISCO is purchased. Allocated costs will have to be absorbed by other production departments.
4. The lowest quotation for 8,000 CISCO units from a supplier is $83,231.
5. If CISCO units are purchased, freight and inspection costs would be $0.37 per unit, and receiving costs totaling $1,260 per year would be incurred by the Machining Department.

Fixed costs for the period were cost of goods sold $1,079,500, and selling and administrative expenses $239,400.
In July, normally a slack manufacturing month, ShurShot Sports receives a special order for 10,800 basketballs at $30 each from the Greek Basketball Association (GBA). Acceptance of the order would increase variable selling and administrative expenses $0.51 per unit because of shipping costs but would not increase fixed costs and expenses.