Seiko\'s current salary is $ Her marginal tax rate is percent, and she fancies European sports cars. She purchases a new auto each year. Seiko is currently a manager for Idaho Office Supply. Her friend, knowing of her interest in sports cars, tells her about a manager position at the local BMW and Porsche dealer. The new position pays $ per year, but it allows employees to purchase one new car per year at a discount of $ This discount qualifies as a nontaxable fringe benefit. In an effort to keep Seiko as an employee, Idaho Office Supply offers her a $ raise. Answer the following questions about this analysis.

b Financially, which offer is better for Seiko on an aftertax basis?

b By how much is the offer better for Seiko on an after tax basis? Assume that Seiko is going to purchase the new car whether she switches jobs or not.