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Required 1 Required 2 Take-a-Break's management believes that it must drop the price of each trip by $105 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 (i.e. .123 = 12.3%).) Cancun Jamaica Profit margin Profit margin (%) % % < Required 1 Required 2 > 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 6 Jamaica 4 Cost Data $60/night 6 4 $15/ea 7 5 $20/ea 6 4 $30/ea 3 2 $80/ea 4 2 $55/ea 1 1 $130 (Cancun), $520 (Jamaica) 1 $20 (Cancun), $50 (Jamaica) The Cancun trip sells for $1,840, and the Jamaica trip sells for $1,600, 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 $105 in order to remain competitive in the market. Recalculate profit margins for both packages at these price levels. Complete this question by entering your answers in the tabs below. Required 1 Required 2 What are the current profit margins on both trips? (Round percentage answers to 1 decimal place (i.e. .123 = Profit margin Profit margin (%) Cancun Jamaica % % < Required 1 Required 2 > 12.3%).)

Required 1 Required 2 Take-a-Break's management believes that it must drop the price of each trip by $105 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 (i.e. .123 = 12.3%).) Cancun Jamaica Profit margin Profit margin (%) % % < Required 1 Required 2 > 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 6 Jamaica 4 Cost Data $60/night 6 4 $15/ea 7 5 $20/ea 6 4 $30/ea 3 2 $80/ea 4 2 $55/ea 1 1 $130 (Cancun), $520 (Jamaica) 1 $20 (Cancun), $50 (Jamaica) The Cancun trip sells for $1,840, and the Jamaica trip sells for $1,600, 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 $105 in order to remain competitive in the market. Recalculate profit margins for both packages at these price levels. Complete this question by entering your answers in the tabs below. Required 1 Required 2 What are the current profit margins on both trips? (Round percentage answers to 1 decimal place (i.e. .123 = Profit margin Profit margin (%) Cancun Jamaica % % < Required 1 Required 2 > 12.3%).)

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter7: Using Consumer Loans
Section: Chapter Questions
Problem 3FPE: Evaluating financing packages. Assume that you’ve been shopping for a new car and intend to finance...
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Required 1 Required 2 Take-a-Break's management believes that it must drop the price of each trip by $105 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 (i.e. .123 = 12.3%).) Cancun Jamaica Profit margin Profit margin (%) % % < Required 1 Required 2 >
Transcribed Image Text:Required 1 Required 2 Take-a-Break's management believes that it must drop the price of each trip by $105 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 (i.e. .123 = 12.3%).) Cancun Jamaica Profit margin Profit margin (%) % % < Required 1 Required 2 >
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 6 Jamaica 4 Cost Data $60/night 6 4 $15/ea 7 5 $20/ea 6 4 $30/ea 3 2 $80/ea 4 2 $55/ea 1 1 $130 (Cancun), $520 (Jamaica) 1 $20 (Cancun), $50 (Jamaica) The Cancun trip sells for $1,840, and the Jamaica trip sells for $1,600, 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 $105 in order to remain competitive in the market. Recalculate profit margins for both packages at these price levels. Complete this question by entering your answers in the tabs below. Required 1 Required 2 What are the current profit margins on both trips? (Round percentage answers to 1 decimal place (i.e. .123 = Profit margin Profit margin (%) Cancun Jamaica % % < Required 1 Required 2 > 12.3%).)
Transcribed Image Text: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 6 Jamaica 4 Cost Data $60/night 6 4 $15/ea 7 5 $20/ea 6 4 $30/ea 3 2 $80/ea 4 2 $55/ea 1 1 $130 (Cancun), $520 (Jamaica) 1 $20 (Cancun), $50 (Jamaica) The Cancun trip sells for $1,840, and the Jamaica trip sells for $1,600, 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 $105 in order to remain competitive in the market. Recalculate profit margins for both packages at these price levels. Complete this question by entering your answers in the tabs below. Required 1 Required 2 What are the current profit margins on both trips? (Round percentage answers to 1 decimal place (i.e. .123 = Profit margin Profit margin (%) Cancun Jamaica % % < Required 1 Required 2 > 12.3%).)
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