Country M levies a 10 percent excise tax on the retail price of any automobile purchased in the country. This year, the aggregate purchase price subject to tax was $6.1 million, so current year revenue was $610,000. Country M plans to increase the tax rate next year to 11 percent.

Compute next year's excise tax revenue assuming next year's tax base equals the current year base.

Compute next year's excise tax revenue assuming next year's tax base increases to $7.4 million.

Compute next year's excise tax revenue assuming next year's tax base decreases to $5.1 million.