Q13-30

Take-a-Break Travel Company offers spring break travel packages to college students. Two of its packages, a seven-day, six-night trip to Cancun and a five-day, four-night trip to Jamaica, have the following characteristics: What are the current profit margins on both trips? Take-a-Break's management believes that it must drop the price on the Cancun and Jamaica trips to $710 and $650, respectively, in order to remain competitive in the market. Recalculate profit margins for both packages at these price levels. Describe two ways that Take-a-Break Travel could cut its costs to get the profit margins back to their original levels. Rick's is a popular restaurant for fine dining. The owner and chef, Rick Goetz, is pleased with his success and is now considering expanding in an second restaurant. Before making his decision, Rick