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:

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Package Specifications Cancun Jamaica Cost Data

Oceanfront room; number of nights $64$ $$67/$night

Meals:

Breakfasts $64$ $$10/$ea

Lunches $75$ $$15/$ea

Dinners $64$ $$25/$ea

Scuba diving trips $32$ $$87/$ea

Water skiing trips $42$ $$62/$ea

Airfare $($round trip from Miami$)11$ $$320($Cancun$),$

$$555($Jamaica$)$

Transportation to and from airport $11$ $$38($Cancun$),$

$$56($Jamaica$)$

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The Cancun trip sells for $$1,980,$ and the Jamaica trip sells for $$1,740,$ and both packages allow two bags to be checked for free.

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Required:

$1.$ What are the current profit margins on both trips?

Cancun Jamaica

Profit margin

Profit margin $(\%)$

$2.$ Take$-$a$-$Break$$s management believes that it must drop the price of each trip by $$112$ in order to remain competitive in the market. Recalculate profit margins for both packages at these price levels.

Cancun Jamaica

Profit margin

Profit margin $(\%)$