Excise Taxes

Reagan Gas provides gas utilities to a wide area of eastern Illinois. During the month or May, it billed $21,800$ of its residential customers located in the town of Moline a total of $$2,260,000$ for electricity $($this is considered revenue$).$ In addition, Reagan is required to collect the following taxes:

a$.$ State Excise Tax: A tax of $$3\mathrm{.}00$ per customer plus $2\%$ of billing used to fund th bucky Energy Commission

b$.$ Federal Excise Tax: A tax of $$0\mathrm{.}50$ per customer plus $0\mathrm{.}1\%$ of billing used to fun $=$ Federal Energy Commission