Hyram Company, which is located in State A, had an average annual payroll of $850,000 for the three 12-month periods ending on June 30, 2014 (the computation date for the tax year 2015). As of June 30, 2014, the total contributions that had been made to Hyram Company's reserve account, in excess of the benefits charged, amounted to $17,440. Compute the following, showing steps:

a. Smallest contribution that the company can make in order to reduce its tax rate if State A permits voluntary contributions.

b. Tax savings realized by the company, taking into consideration the voluntary contribution made in (c) if the taxable payroll in 2015 is $980,000.