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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 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 $17 million, so current year revenue was $0.85 million. Clements city council recently voted to increase the hotel tax rate to 6 percent for the next fiscal year.
Required:
Compute next years hotel tax revenue assuming next years tax base equals the current year base.
Compute next years hotel tax revenue assuming next years tax base decreases to $14 million.
Compute next years hotel tax revenue assuming next years tax base decreases to $11 million.

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