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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

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 6 4 $65 /night
Meals:
Breakfasts 6 4 $12 /ea
Lunches 7 5 $17 /ea
Dinners 6 4 $27 /ea
Scuba diving trips 3 2 $83 /ea
Water skiing trips 4 2 $58 /ea
Airfare (round trip from Miami) 1 1 $260 (Cancun),
$410 (Jamaica)
Transportation to and from airport 1 1 $36 (Cancun),
$52 (Jamaica)

The Cancun trip sells for $1,900, and the Jamaica trip sells for $1,660, and both packages allow two bags to be checked for free.

1. What are the current profit margins (in dollars and percent) on both trips?

2. Take-a-Breaks management believes that it must drop the price of each trip by $108 in order to remain competitive in the market. Recalculate profit margins for both packages at these price levels.

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