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The city of Clement levies a 5 percent tax on the base price of rooms provided by hotels and motels located within the city limits.

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The city of Clement levies a 5 percent tax on the base price of rooms provided by hotels and motels located within the city limits. This year, the aggregate room price subject to tax was $23 million, so current year reveriue was $1.15 million. Clement's city council recently voted to increase the hotel tax rate to 6 percent for the next fiscal year. Required: 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 $20 million. c. Compute next year's hotel tax revenue assuming next year's tax base decreases to $17 million. Complete this question by entering your answers in the tabs below. Compute next year's hotel tax revenue assuming next year's tax base equals the current year base. Note: Enter your answer in millions rounded to 2 decimal places

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