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Exercise 14-39 Fusion Metals Company needs a new manager for its Cutting Department. It is considering closing its Packaging Department, and if it does the
Exercise 14-39
Fusion Metals Company needs a new manager for its Cutting Department. It is considering closing its Packaging Department, and if it does the Packaging Department manager will be appointed manager of the Cutting Department. The Packaging Department manager makes $45,000 per year. To hire a new Cutting Department manager from outside the company will cost Fusion $60,000 per year.
Required: Discuss the relevance of each of these salary figures to the department-closing decision.
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