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:
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: Cancun 5 Jamaica 5 Cost Data $ 25ight Package Specifications Oceanfront room; number of nights Meals: Breakfasts Lunches Dinners Scuba diving trips Water skiing trips Airfare (round trip from Miami) 5 3 4 4 9 1 5 5 0 4 6 1 $ 5/ea $ 4/ea $ 10/ea $ 19/ea $ 14/ea $ 195 (Cancun), $ 270 (Jamaica) $ 19 (Cancun), $ 14(Jamaica) Transportation to and from airport 1 1 The Cancun trip sells for $750, and the Jamaica trip sells for $690, 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 $710 and $640, respectively, in order to remain competitive in the market. Recalculate profit margins for both packages at these price levels. Complete this question by entering your answers in the tabs below. Required 1 Required 2 What are the current profit margins on both trips? (Round percentage answers to 1 decimal place.) Cancun Jamaica Profit margin Profit margin (%) (Required 1 Required 2 > The Cancun trip sells for $750, and the Jamaica trip sells for $690, 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 $710 and $640, respectively, in order to remain competitive in the market. Recalculate profit margins for both packages at these price levels. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Take-a-Break's management believes that it must drop the price on the Cancun and Jamaica trips to $710 and $640, respectively, 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.) Cancun Jamaica Profit margin Profit margin (%)
