Exercise 13-30 (Algo) Target Costing in a Service Firm [LO 13-1] Take-a-Break Travel Company offers spring break travel packages to college students. Two of its packages, a 7-day, 6- night trip to Cancun and a 5-day, 4-night trip to Jamaica, have the following characteristics: Package Specifications Cancun Jamaica Cost Data Oceanfront room; number of 6 4 $73/night nights Meals: Breakfasts Lunches Dinners 6960 4 $10/ea 7 5 $15/ea 4 $25/ea Scuba diving trips 3 2 $93/ea Water skiing trips 4 2 $68/ea Airfare (round trip from Miami) 1 1 $400 (Cancun), $500 (Jamaica) Transportation to and from 1 1 $60 (Cancun), $66 (Jamaica) airport The Cancun trip sells for $2,100, and the Jamaica trip sells for $1,860, and both packages allow two bags to be checked for free. Required: 1. What are the current profit margins on both trips? 2. Take-a-Break's management believes that it must drop the price of each trip by $118 in order to remain competitive in the market. Recalculate profit margins for both packages at these price levels. Complete this question by entering your answers in the tabs below. Required Required 1 2 Take-a-Break's management believes that it must drop the price of each trip by $118 in order to remain competitive in the market. Recalculate profit margins for both packages at these price levels. (Round percentage answers to 1 decimal place (i.e. .123 = 12.3%).) Profit margin Profit margin (%) Cancun Jamaica % % < Required 1 Required 2 > Show less