es E 13-36 Target Costing in a Service Firm - SUBMIT THIS Homework Collected Solution Worksheet Take-a-Break Travel Company offers spring break travel packages to college students. Two of the packages, are a seven-day, six-night trip to Cancun that sells for $750 and a five-day, four-night trip to Jamaica that sells for $690. The two trips have the following costs: Cancun Jamaica Unit Cost Quantity Cost Quantity Cost Oceanfront room; number of nights $30 61$ 180 41 $ 120 Breakfasts 5 35 5 25 Lunches 7 7 49 5 35 Dinners 10 6 60 0 Scuba diving trips 15 60 2 30 Water skiing trips 10 50 2 20 Round trip airfare from Miami 175 1 250 Transportation to and from airport 1 15 1 10 Total cost 624 490 Part 1: What are the current profit margins in dollars and percentage? Note that there is no good reason to repeat the cost detail provided to solve this; just use the total cost. Part 2: Take-a-Break's management believes that it must drop the price on the Cancun trip to $710 and on the Jamaica trip to $650 in order to remain competitive in the market. Recalculate the profit margins for both packages at these price levels. Part 3: Describe two ways that Take-a-Break cold cut its costs to get profit margins back to original levels. Remember that you do not want to reduce value to the customer, so simply making the trips shorter will not suffice. Part 1: Current Profit Margin Sales price $ 750 $ 690 DAO