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Seiko's current salary is $ 1 2 7 , 5 0 0 . Her marginal tax rate is 3 2 percent, and she fancies European

Seiko's current salary is $127,500. Her
marginal tax rate is 32 percent, and she
fancies European sports cars. She
purchases a new auto each year. Seiko is
currently a manager for Idaho Office
Supply, Inc. 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
only $116,800 per year, but it allows
employees to purchase one new car per
year at a discount of $16,700. This
discount qualifies as a nontaxable fringe
benefit. In an effort to keep Seiko as an
employee, Idaho Office Supply, Inc. offers
her a $10,900 raise. Answer the following
questions about this analysis.
c. What salary would Seiko need to receive from Idaho
Office Supply, Inc. to make her financially indifferent (after
taxes) between receiving additional salary from Idaho
Office Supply and accepting a position at the auto
dealership? (Round your intermediate computations to
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