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This year, State A raised revenues by increasing its general sales tax rate from 5 percent to 6 percent. Because of the increase, the volume

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This year, State A raised revenues by increasing its general sales tax rate from 5 percent to 6 percent. Because of the increase, the volume of taxable sales declined from $866 million to $731 million. In contrast, State Z raised revenues from its 5 percent sales tax by expanding the tax base to include certain retail services. The volume of services subject to tax was $54 million.
Requlred:
a. Compute the additional revenue raised by State A.
b. Compute the additlonal revenue raised by State Z.
Complete this question by entering your answers in the tabs below.
Required A
Required B
Compute the additional revenue raised by State A.
Note: Enter your answers in dollars not in millions of dollars.
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