Charles and Emily are employed by Diamond Co., which provides their employees with free parking. If parking was not available, Charles would pay $35 in a city garage. Emily uses public transportation to commute.

Diamond offers a complete family medical plan to its employees and both Charles and Emily participate. Charles' family consists of 5 people and Emily is single. Without the medical benefit, Charles' annual cost of medical insurance would be $9,000 while Emily's would be $4,100.

A. Charles' marginal tax rate is 28%. How much additional salary would need to earn to provide his family and him with medical insurance and parking? Assume Charles could not deduct his annual medical insurance premiums.

B. Emily's marginal tax rate is 39.6%. How much additional salary would she need to earn to provide herself with medical insurance? Assume Emily could not deduct her annual medical insurance premiums.