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	$60	/night
Meals:
Breakfasts	6	4	$15	/ea
Lunches	7	5	$20	/ea
Dinners	6	4	$30	/ea
Scuba diving trips	3	2	$80	/ea
Water skiing trips	4	2	$55	/ea
Airfare (round trip from Miami)	1	1	$130	(Cancun),
			$520	(Jamaica)
Transportation to and from airport	1	1	$20	(Cancun),
			$50	(Jamaica)

The Cancun trip sells for $1,840, and the Jamaica trip sells for $1,600, and both packages allow two bags to be checked for free.

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

2. Take-a-Breaks management believes that it must drop the price of each trip by $105 in order to remain competitive in the market. Recalculate profit margins for both packages at these price levels.

3. Take-a-Breaks management believes that it must drop the price of each trip by $105 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%).)