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	$66	/night
Meals:
Breakfasts	6	4	$15	/ea
Lunches	7	5	$20	/ea
Dinners	6	4	$30	/ea
Scuba diving trips	3	2	$86	/ea
Water skiing trips	4	2	$61	/ea
Airfare (round trip from Miami)	1	1	$120	(Cancun),
			$525	(Jamaica)
Transportation to and from airport	1	1	$42	(Cancun),
			$56	(Jamaica)

The Cancun trip sells for $1,960, and the Jamaica trip sells for $1,720, and both packages allow two bags to be checked for free.

Required:

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

	Cancun		Jamaica
Profit margin
Profit margin (%)		%		%

2. Take-a-Breaks management believes that it must drop the price of each trip by $111 in order to remain competitive in the market. Recalculate profit margins for both packages at these price levels.

	Cancun		Jamaica
Profit margin
Profit margin (%)		%		%