In this paper, we are assigned to study the case of Shuttle’s Best. We are to study the business of Cadillac “Cody” situated in the Florida Keys, which provides transportation services from Miami Airport to the Keys. In the following scenarios, we are to decide which group shall Cody choose to serve, which group shall he book and by how much shall his income increase, how much income shall he sacrifice, and why might his strategy work.
A.
Originally planned trip to the Upper Keys
Fare 300
Add: Tip 45
Total 345
For the Choice: Upper Lower
Income from previous trip P 345 P345
Add: New Group 300 500
Add: Tip 45 75
Total Income P 690 P 920
/ Number of Hours 8 11.5
Hourly Income P 86.25 P 80 ====== =====
Based on the computation above, we can say that Cody would have a better income if he takes the later reservation to the Upper Keys, instead of the Lower Keys. Cody’s income from the previously booked trip is 345, including the tip. So if he would take the new group to the Upper Keys, he would have a total income of P 690, and if he takes the new group to the Lower Keys, he will have an income of P 920. However, this is not yet done, if he takes the trip to the Upper Keys, he would only have 2 Roundtrips, meaning 8 hours of work, but if he takes the group to the Lower Keys, he would have to spend a total of 11 and a half hours (3.75+3.75+2+2=11.5). So in a sense, he would have a far better hourly income if he takes the people to the Upper Keys instead of the Lower Keys.
So in this particular Tuesday, Cody’s income will double in a sense that he’ll be taking 2 roundtrip trips to the Upper Keys.