(Crazy Cab) Crazy Cab is a small taxi cab company operating in a large metropolitan area. The…


(Crazy Cab) Crazy Cab is a little taxi cab posse permitted in a enlightened metropolitan area. The posse operates 20 cabs. Each cab is estimate environing $20k. The metropolitan area  also requires that each cab push a medallion (a archearchetype of allow). Medallions are currently traded at $50k. Cab drivers construct $8 per hour and are available at complete occasion of the day. The medium cab is used for 40 errs per day. The medium err is three miles in diffusiveness. Passengers enjoy to pay $2 as a unwandering fee and $2 per mile they are transported. Fuel and other costs, such as livelihood, are $0.20 per mile. The cab drives environing 40 percent of the remoteness extraneously a paying wayfarer in it (e.g. , unimportant from a drop-off location, cream up a wayfarer, etc.)

a. Draw an ROIC tree for the cab posse. [6.2]

b. Populate the tree delay mass. Construct assumptions to prove operational variables in  as considerable element as likely (e.g., assumptions environing gas prices, gas decline, etc.). [6.2]

c. Which of the variables would you class as operational estimate drivers? [6.3]

d. Analyze the drudge aptitude and the aptitude of using the rapid of cabs using productivity ratios. [6.4]