Complete this question by entering your answers in the tabs below.Required 1 Required 2Take-a-Break's management believes that it must drop the price of each trip by $113 in order to remain competitive in themarket. Recalculate profit margins for both packages at these price levels. (Round percentage answers to 1 decimal place (i.e..123 = 12.3%).)Profit marginProfit margin (%)Cancun%Jamaica%< Required 1Required 2 > Take-a-Break Travel Company offers spring break travel packages to college students. Two of its packages, a 7-day, 6-night trip toCancun and a 5-day, 4-night trip to Jamaica, have the following characteristics:Package SpecificationsOceanfront room; number of nightsMeals:BreakfastsLunchesDinnersScuba diving tripsWater skiing tripsAirfare (round trip from Miami)Transportation to and from airportRequired 1Cancun Jamaica64Required 2Profit marginProfit margin (%)69634Cancun7$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 1454NNA12Complete this question by entering your answers in the tabs below.2Required: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.11Cost Data$69/nightWhat 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/eaRequired 2 >

Profit margin refers to the term which is defined as the difference among the aggregate cost for…

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)

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 16E

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