Problem 02-14 (Algo) [LO 2-5, 2-6, 2-7] Jurisdiction Z levies an excise tax on retail purchases of jewelry and watches. The tax equals 3 percent of the first $1,000 of the purchase price plus 1 percent of the purchase price in excess of $1,000. Required: Individual C purchases a watch for $700. Compute Cs excise tax and average excise tax rate. Individual D purchases a watch for $6,400. Compute Ds excise tax and average excise tax rate. Is Jurisdiction Zs excise tax vertically equitable?