John has an extra bedroom in his house that he occasionally rents out using the service airbnb. john charges $100 per night, and his room is occupied by a renter approximately 100 nights per year. he thinks that if he repaints the room the photos he posts on airbnb to draw customers will be more attractive, allowing him to charge $110 dollars per night and to rent the room for 120 nights per year. john's tax rate is 28%. what is the annual, afterdashtax, incremental revenue that john expects from his painting project?

C. $2304

Explanation:

The annual, after-tax, revenue is:

$100 × 100 nights = 10000.

The tax rate is 28% of 10000 : 0.28 of 10000

Therefore 0.28 × 10000 = 2800.

Revenue = 10000 - 2800 =7200

The annual, after-tax, incremental revenue is:

$110 ×120 nights = 13200.

The tax rate is 28% of 13200 : 0.28 of 13200

Therefore 0.28 × 13200 = 3696

Incremental revenue = 13200 - 3696 = 9504

Then, the subtract the initial revenue from the new revenue.

9504 - 7200 = 2304

Therefore, the annual, after-tax, incremental revenue that John expects from his painting project is $2304

answerpublic goods;