Mr. Nixon and Mr. Ryan are employed by HD Incorporated, which provides its employees with free parking. If the parking were not available, Mr. Nixon would pay $10 a month to a city garage. Mr. Ryan uses public transportation to commute. HD offers a complete family medical plan to its employees in which both Mr. Nixon and Mr. Ryan participate. Mr. Nixons family consists of five people, while Mr. Ryan is single. Consequently, Mr. Nixons annual cost of comparable medical insurance would be $11,800, and Mr. Ryans cost would be just $5,150. Assume that Mr. Nixon and Mr. Ryan cannot deduct their annual medical insurance premiums.

Required:

1. Mr. Nixon has a 24 percent marginal tax rate. How much additional salary would he have to earn to provide himself with parking and medical insurance?
2. Mr. Ryan has a 37 percent marginal tax rate. How much additional salary would he have to earn to provide himself with parking and medical insurance?