Take-a-Break Travel Company offers spring break travel packages to college students. Two of its packages, a 6-day, 5-night trip to Cancun and a 6-day, 5-night trip to Jamaica, have the following characteristics:

Package Specifications. Cancun Jamaica Cost Data

Oceanfront room; number of nights 5 5 $20/night

Meals:

Breakfasts. 5 5 $4/ea

Lunches 7 5 $7/ea

Dinners 8 0 $10/ea

Scuba diving trips 5 5 $20/ea

Water skiing trips 5 7 $15/ea

Airfare (round trip from Miami) 1 1 $200(Cancun),

$275(Jamaica)

Transportation to and from airport 1 1 $20(Cancun),

$15(Jamaica)

The Cancun trip sells for $800, and the Jamaica trip sells for $740, 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 on the Cancun and Jamaica trips to $760 and $710, respectively, in order to remain competitive in the market. Recalculate profit margins for both packages at these price levels.

1. Profit margin Cancun? Jamaica?

profit margin% % %

2.Profit Margin. Cancun? Jamaica?

Profit Margin % % %