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 $64$ $$75/$night

Meals:

Breakfasts $64$ $$14/$ea

Lunches $75$ $$19/$ea

Dinners $64$ $$29/$ea

Scuba diving trips $32$ $$91/$ea

Water skiing trips $42$ $$66/$ea

Airfare $($round trip from Miami$)11$ $$135($Cancun$),$

$$515($Jamaica$)$

Transportation to and from airport $11$ $$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$-$Break$$s management believes that it must drop the price of each trip by $$116$ in order to remain competitive in the market. Recalculate profit margins for both packages at these price levels.

Answer rating: 100% (QA)

Answer 1 Current Profit Margins Cancun Trip Accommodation 6 nights 75night 450 Meals Breakfast 6 14e... View the full answer