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 SpecificationsCancunJamaicaCost DataOceanfront room; number of nights64$61/nightMeals: Breakfasts64$13/eaLunches75$18/eaDinners64$28/eaScuba diving trips32$78/eaWater skiing trips42$53/eaAirfare (round trip from Miami)11$200(Cancun), $405(Jamaica)Transportation to and from airport11$29(Cancun), $44(Jamaica)

The Cancun trip sells for $1,800, and the Jamaica trip sells for $1,560, 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-Breaks management believes that it must drop the price of each trip by $103 in order to remain competitive in the market. Recalculate profit margins for both packages at these price levels.