Take-a-Break Travel Company offers spring break travel packages to college students. Two of its packages, a...
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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 Oceanfront room; number of nights Meals: Breakfasts Lunches Dinners Scuba diving trips Water skiing trips Airfare (round trip from Miami) Transportation to and from airport Cancun Jamaica 6 4 67634H 1 4542NE 1 Cost Data $63/night $11/ea $16/ea $26/ea $82/ea $57/ea $330 (Cancun), $500 (Jamaica) $35 (Cancun), $54 (Jamaica) The Cancun trip sells for $1,880, and the Jamaica trip sells for $1,640, 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 $107 in order to remain competitive in the market. Recalculate profit margins for both packages at these price levels. 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 Oceanfront room; number of nights Meals: Breakfasts Lunches Dinners Scuba diving trips Water skiing trips Airfare (round trip from Miami) Transportation to and from airport Cancun Jamaica 6 4 67634H 1 4542NE 1 Cost Data $63/night $11/ea $16/ea $26/ea $82/ea $57/ea $330 (Cancun), $500 (Jamaica) $35 (Cancun), $54 (Jamaica) The Cancun trip sells for $1,880, and the Jamaica trip sells for $1,640, 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 $107 in order to remain competitive in the market. Recalculate profit margins for both packages at these price levels.
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Based on the provided data I will calculate the total costs and then the profit margin for each pack... View the full answer
Related Book For
Cost management a strategic approach
ISBN: 978-0073526942
5th edition
Authors: Edward J. Blocher, David E. Stout, Gary Cokins
Posted Date:
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