All variable manufacturing and direct fixed costs will be eliminated if CISCO is purchased. Allocated costs will not be eliminated if CISCO is purchased. So if CISCO is purchased, the fixed manufacturing costs allocated to CISCO will have to be absorbed by other production departments.

$4.$ The lowest quotation for $8,000$ CISCO units from a supplier is $$80,000.$

$5.$ If CISCO units are purchased, freight and inspection costs would be $$0\mathrm{.}35$ per unit, and receiving costs totaling $$1,300$ per year