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The city of Clement levies a 5 percent tax on the base price of rooms provided by hote ls and motels located within the city
The city of Clement levies a 5 percent tax on the base price of rooms provided by hote ls and motels located within the city limits. This year, the aggregate room price subject to tax was $31 million, so current year revenue was $1.55 million. Clement's city council recently voted to increase the hotel tax rate to 6 percent for the next fiscal year. a. Compute next year's hotel tax revenue assuming next year's tax base equals the current year base. b. Compute next year's hotel tax revenue assuming next year's tax base decreases to $28 million. c. Compute next year's hotel tax revenue assuming next year's tax base decreases to $25 million. Complete this question by entering your answers in the tabs below. Required A Required C Required B Compute next year's hotel tax revenue assuming next year's tax base equals the current year base. (Enter your answer in millions rounded to 2 decimal places.) Tax revenue million Required A Required B Complete this question by entering your answers in the tabs below. Required B Required A Required C Compute next year's hotel tax revenue assuming next year's tax base decreases to $28 million. (Enter your answer in millions rounded to 2 decimal places.) Tax revenue million Required A Required C Complete this question by entering your answers in the tabs below. Required A Required B Required C Compute next year's hotel tax revenue assuming next year's tax base decreases to $25 million. (Enter your answer in millions rounded to 2 decimal places.) Tax revenue million Required B Required C
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