Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Decide which vehicle to purchase: Your team wants to start an independent ride-hailing service like Uber and need to decide the type of vehicle to
Decide which vehicle to purchase: Your team wants to start an independent ride-hailing service like Uber and need to decide the type of vehicle to purchase. The target customer is students who need transportation to get to school. Create a decision tree using the information provided, your group must determine the percentage of demand for the chance node and consider Strong and Weak Demand. BASIC (3 Vehicles project a volume of 1,000 rides per year): 2021 Kia Rondo Purchase Cost = $7,500 Profit: $12 per ride 2020 Toyota Corolla Purchase Cost: $10,000 Profit: $14 per ride 2015 Honda Fit Purchase Cost: $4,000 Profit: $18 per ride ALL-WEATHER (2 Vehicles, project a volume of 800 rides per year): 2021 Honda Pilot Purchase Cost: $40,000 Profit: $25 per ride 2022 Subaru Ascent Purchase Cost: $50,000 Profit: $30 per ride ENVIRONMENTAL (1 Vehicle, project a volume of 800 rides per year): 2020 Tesla Purchase price = $80,000 Profit: $40 per ride
Step by Step Solution
★★★★★
3.43 Rating (153 Votes )
There are 3 Steps involved in it
Step: 1
SOLUTION To decide which vehicle to purchase for your ridehailing service we can use a decision tree to analyze the profit potential of each option ba...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started