Research paper

Individual Written Assignment 1

CLOs 1,4,6

Leemo and Ride-A-Way are new ride-hailing service alternatives to taxi cabs like Uber and Lyft. While Ride-A-Way pays its drivers on a per-ride basis, Leemo prefers to pay its drivers fixed salaries. The cost structures and pricing of the two firms are given in the following table:

Cost Grouping Ride-A-Way Leemo

Selling price per ride $30 $30

Variable cost per ride $24 $15

Contribution margin $6 $15

per ride

Fixed costs per year $300,000 $1,500,000

Deliverables

1. Deliverables:
2. Research the ride-hailing industry and in no less than 500 words describe its evolution and where it stands today. You may use figures, tables, and graphs to support your argument but remember to cite your work.
3. Use the information provided to calculate the breakeven point in the number of rides for both companies.
4. Prepare two graphs plotting profit as a function of the number of rides for each of the two companies.
5. Explain which company has the more profitable cost structure.
6. Explain which companys cost structure is riskier and why.

Paper Specifics

Although this is a working paper it is also a research paper; therefore, it should be developed, organized and presented using APA formatting guidelines including the use of a title page, citations, headings, tables, figures, references and appendices (if applicable); be sure to cite at least three scholarly researched sources.

Any calculations and graphs may be done in Excel, and then transferred to a Word document. All calculations should be clearly explained as to your assumptions and how you arrived at your answers.

Note: Though the names of the teams in the case may be familiar, they are purely fictional; do not use external sources that discuss teams with similar names to support your analysis or any conclusions you draw.

Neither an abstract or running head is necessary for this assignment.

The submitted assignment MUST BE a Word Document.