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:

Identify the relevance of each of these salary figures to the department$-$closing decision.