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 Cancun Jamaica 4 6 3 4 1 454222 Cost Data $65/night $12/ea $17/ea $27/ea $83/ea $58/ca Airfare (round trip from Miani) Transportation to and from airport $260 (Cancun), $418 (Jamaica) $36 (Cancun), $52 (Jamaica) The Cancun trip sells for $1,900, and the Jamaica trip sells for $1,660, 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 $108 in order to remain competitive in the marke Recalculate profit margins for both packages at these price levels.

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.