Mr. N and Mr. R are employed by HD Inc., which provides its employees with free parking. If the parking were not available, Mr. N would pay $350 a month to a city garage. Mr. R uses public transportation to commute. HD offers a complete family medical plan to its employees in which both Mr. N and Mr. R participate. Mr. Ns family consists of five people, while Mr. R is single. Consequently, Mr. Ns annual cost of comparable medical insurance would be $9,000, while Rs cost would be just $4,100.

a) Mr. N has a 28 percent marginal tax rate. How much additional salary would he have to earn to provide himself with parking and medical insurance? Calculate the additional taxable salary required to pay for parking and medical.

b) Mr. R has a 35 percent marginal tax rate. How much additional salary would he have to earn to provide himself with medical insurance?