city deliveries 8
The companies:
Erin Electrical: 35km round trip
Mike Mechanic: 12km round trip
Couriers and charges:
TAXI 1: from the graph
TAXI 2: $25 flag fall/booking fee and $2.10 per km
SPEEDY: Flat rate of $80 regardless of the distance
DRIVE: $60 flag fall/booking fee and $0.5 per km
ACHIEVED
A. Represent the couriers charges as mathematical equations using equations and graphs.
B. Recommend the cheapest courier to use for getting Erin Electrical and Mike Mechanic, their goods, to their depots and back.
MERIT
C. From time to time, other companies need the services of these couriers/taxis. They operate at various distances from their depots. Make recommendations as to how other companies operating their businesses should use these couries/taxis for their transport solutions. Justify your recommendation(s).
EXCELLENCE
D. You are required to set up your own courier service for passengers living within a 30km radius of their depots (round trip of 60km). Design and recommend a pricing structure that would allow your business to be the cheapest service and still to be profitable. Lastly, all businesses are subject to a $10 Road user charge.
Your solution of this problem should:
● show all relevant calculations
● use correct mathematical statements
● clearly communicate your strategy and method at each stage of the solution. The quality of your discussions and reasoning.
Erin Electrical: 35km round trip
Mike Mechanic: 12km round trip
Couriers and charges:
TAXI 1: from the graph
TAXI 2: $25 flag fall/booking fee and $2.10 per km
SPEEDY: Flat rate of $80 regardless of the distance
DRIVE: $60 flag fall/booking fee and $0.5 per km
ACHIEVED
A. Represent the couriers charges as mathematical equations using equations and graphs.
B. Recommend the cheapest courier to use for getting Erin Electrical and Mike Mechanic, their goods, to their depots and back.
MERIT
C. From time to time, other companies need the services of these couriers/taxis. They operate at various distances from their depots. Make recommendations as to how other companies operating their businesses should use these couries/taxis for their transport solutions. Justify your recommendation(s).
EXCELLENCE
D. You are required to set up your own courier service for passengers living within a 30km radius of their depots (round trip of 60km). Design and recommend a pricing structure that would allow your business to be the cheapest service and still to be profitable. Lastly, all businesses are subject to a $10 Road user charge.
Your solution of this problem should:
● show all relevant calculations
● use correct mathematical statements
● clearly communicate your strategy and method at each stage of the solution. The quality of your discussions and reasoning.
Graphs and Equations
Table of Cost and distance
B: Recommendation
- Erin Electrical should use Drive for the round trip to and from her depot. The cost, C = 0.5 x (35) + 60 = $77.50
- Mike Mechanic should use TAXI 2 for the round trip to and from his depot. The cost, C = 2.1 x (12) + 25 = $50.20
Merit
- Taxi 1 is the cheapest for travel up to 8.7 km (companies operating within 4.35 km of their depots)
- Taxi 2 is the cheapest for travel between 8.7 km and 21.88 km (companies operating within 4.35 km to 10.94 km of their depots)
- Drive is cheapest for travel between 21.88 km and 40 km (companies operating within 10.94 km and 20 km of their depots)
- Speedy is cheapest after 40 km.
My Strategy For a Competitive Pricing Structure
I could charge the same rate as all the other companies and use a smaller booking fee. A $2 reduction in the booking fee would allow me to be competitive without putting my business at risk.
Equations:
I could charge the same rate as all the other companies and use a smaller booking fee. A $2 reduction in the booking fee would allow me to be competitive without putting my business at risk.
Equations: