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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
The city of Clement levies a 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 $ million, so current year revenue was $ million. Clement's city council recently voted to increase the hotel tax rate to 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 $ million.
c Compute next year's hotel tax revenue assuming next year's tax base decreases to $ million.
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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 decimal places.
Tax revenue
million
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