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 nights $64$ $ $55/$night

Meals:

Breakfasts $64$ $ $10/$ea

Lunches $75$ $ $15/$ea

Dinners $64$ $ $25/$ea

Scuba diving trips $32$ $ $75/$ea

Water skiing trips $42$ $ $50/$ea

Airfare $($round trip from Miami$)11$ $ $375($Cancun$),$

$ $550($Jamaica$)$

Transportation to and from airport $11$ $ $25($Cancun$),$

$ $40($Jamaica$)$

The Cancun trip sells for $$1,750,$ and the Jamaica trip sells for $$1,500,$ 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$$s management believes that it must drop the price of each trip by $$100$ in order to remain competitive in the market. Recalculate profit margins for both packages at these price levels.