Take-a-Break Travel Company offers spring break travel packages to college students. Two of its packages, a 5-day, 4-night trip to Cancun and a 7-day, 6-night trip to Jamaica, have the following characteristics:

Package Specifications	Cancun				Jamaica				Cost Data
Oceanfront room; number of nights		4				6			$	12	/night
Meals:
Breakfasts		4				6			$	3	/ea
Lunches		7				6			$	8	/ea
Dinners		4				0			$	10	/ea
Scuba diving trips		4				5			$	19	/ea
Water skiing trips		5				6			$	14	/ea
Airfare (round trip from Miami)		1				1			$	225	(Cancun),
									$	300	(Jamaica)
Transportation to and from airport		1				1			$	19	(Cancun),
									$	14	(Jamaica)

The Cancun trip sells for $850, and the Jamaica trip sells for $790, 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 on the Cancun and Jamaica trips to $810 and $750, respectively, in order to remain competitive in the market. Recalculate profit margins for both packages at these price levels.

What are the current profit margins on both trips? (Round percentage answers to 1 decimal place.)

	Cancun		Jamaica
Profit margin	$304selected answer correct
Profit margin (%)	35.8selected answer correct	%		%

Take-a-Breaks management believes that it must drop the price on the Cancun and Jamaica trips to $810 and $750, 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	$264selected answer correct
Profit margin (%)	32.6selected answer correct	%		%