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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 676341 1 422552 1 1 Cost Data $69/night $11/ea $16/ea $26/ea $88/ea $63/ea $340 (Cancun), $500 (Jamaica) $46 (Cancun), $58 (Jamaica)

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 676341 1 422552 1 1 Cost Data $69/night $11/ea $16/ea $26/ea $88/ea $63/ea $340 (Cancun), $500 (Jamaica) $46 (Cancun), $58 (Jamaica)

PFIN (with PFIN Online, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)
PFIN (with PFIN Online, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)
6th Edition
ISBN:9781337117005
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter6: Using Credit
Section: Chapter Questions
Problem 9FPE
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Complete this question by entering your answers in the tabs below. Required 1 Required 2 Take-a-Break's management believes that it must drop the price of each trip by $113 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%).) Profit margin Profit margin (%) Cancun % Jamaica % < Required 1 Required 2 >
Transcribed Image Text:Complete this question by entering your answers in the tabs below. Required 1 Required 2 Take-a-Break's management believes that it must drop the price of each trip by $113 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%).) Profit margin Profit margin (%) Cancun % Jamaica % < 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 Required 1 Cancun Jamaica 6 4 Required 2 Profit margin Profit margin (%) 69634 Cancun 7 $340 (Cancun), $500 (Jamaica) $46 (Cancun), $58 (Jamaica) The Cancun trip sells for $2,000, and the Jamaica trip sells for $1,760, and both packages allow two bags to be checked for free. % 1 < Required 1 454NNA 1 2 Complete this question by entering your answers in the tabs below. 2 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 $113 in order to remain competitive in the market. Recalculate profit margins for both packages at these price levels. 1 1 Cost Data $69/night What are the current profit margins on both trips? (Round percentage answers to 1 decimal place (i.e. .123 = 12.3%).) Jamaica $11/ea $16/ea $26/ea $88/ea $63/ea Required 2 >
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 Required 1 Cancun Jamaica 6 4 Required 2 Profit margin Profit margin (%) 69634 Cancun 7 $340 (Cancun), $500 (Jamaica) $46 (Cancun), $58 (Jamaica) The Cancun trip sells for $2,000, and the Jamaica trip sells for $1,760, and both packages allow two bags to be checked for free. % 1 < Required 1 454NNA 1 2 Complete this question by entering your answers in the tabs below. 2 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 $113 in order to remain competitive in the market. Recalculate profit margins for both packages at these price levels. 1 1 Cost Data $69/night What are the current profit margins on both trips? (Round percentage answers to 1 decimal place (i.e. .123 = 12.3%).) Jamaica $11/ea $16/ea $26/ea $88/ea $63/ea Required 2 >
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