Question: Q 6 . 1 ( Static ) Crazy Cab [ 6 . 2 , 6 . 3 , 6 . 4 ] Crazy Cab is

Q6.1(Static) Crazy Cab [6.2,6.3,6.4]
Crazy Cab is a small taxi cab company operating in a large metropolitan area. The company operates 20 cabs. Each cab is worth about $20k. The metropolitan area also requires that each cab carry a medallion (a type of license). Medallions are currently traded at $50k. Cab drivers make $8 per hour and are available at every time of the day. The average cab is used for 40 trips per day. The average trip is three miles in length. Passengers have to pay $2 as a fixed fee and $2 per mile they are transported. Fuel and other costs, such as maintenance, are $0.20 per mile. The cab drives about 40 percent of the distance without a paying passenger in it (e.g., returning from a dropoff location, picking up a passenger, etc.)
a. Draw an ROIC tree for the cab company.

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