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	$75	/night
Meals:
Breakfasts	6	4	$14	/ea
Lunches	7	5	$19	/ea
Dinners	6	4	$29	/ea
Scuba diving trips	3	2	$91	/ea
Water skiing trips	4	2	$66	/ea
Airfare (round trip from Miami)	1	1	$135	(Cancun),
			$515	(Jamaica)
Transportation to and from airport	1	1	$32	(Cancun),
			$60	(Jamaica)

The Cancun trip sells for $2,060, and the Jamaica trip sells for $1,820, 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 $116 in order to remain competitive in the market. Recalculate profit margins for both packages at these price levels.