Bertha Sunshine entered the travel business after having traveled regularly to the Caribbean and becoming familiar with the businesses in the region. She discovered a market need, and in the 1960s started Sunny Fun Destinations, a travel agency that specializes in providing air and ground transportation as well as hotel and meal arrangements for locations in the Caribbean. In the 1970s, she started to see a shift in the market for students traveling during their spring break from school, and her agency expanded as she started to capitalize on the growth. Students who used to travel to Florida were increasingly frequenting destinations in the Caribbean. Until recently, she had never considered segmenting the spring break market. She simply offered the same travel package to all customers, which included an incentive for organizers of trips with 15 students or more. Trip organizers receive their packages free of charge in exchange for agreeing to be chaperons for their student group. However, a recent upswing in negative media publicity has taken Bertha and her staff by surprise. The media has exposed heavy drinking by underage high school and college students at unchaperoned parties at destinations in the Caribbean. Bertha is worried that she may be vulnerable from a publicity perspective. She wonders how responsible she, as tour operator, should be when she only provides arrangements for transportation, lodging, and food.

Assume that the average cost of airfare is $400 per chaperone and incidentals are $150 per day per chaperone. All vacation packages are for 6 days. If a ratio of one chaperone per 15 travelers is kept, what is the minimum amount that must be included in the vacation package price charged to each customer to cover the cost of a chaperone? (A) $60 (B) $87 (C) $104 (D) $150