A state imposes a retail sales tax on consumer purchases of many items. The table below shows information related to the Smith and Jones families, who are generally representative of similar consumers in the state. Answer the following questions in the Word document, and include a table in the Excel file.

Smith Family: Jones Family:

Income: $35,000 $101,000

Household: 5 3

Proposed Exemption of Food: d. The current tax includes food purchases. The state is considering exempting food purchased for at-home use (e.g., from grocery stores). The Smith family spends $14,600 annually on food for at-home use, while the Jones family spends $29,900. What will be the amount of sales tax paid by each family if food purchases are exempted from the tax? e. What is the total amount of tax revenue the state will receive from these two families if food is exempted? f. What will be the effective rate paid by each family if food is exempted?