Business, 20.10.2020 20:01 ernestsbaby6181

Transworld Deliveries is expanding its contract home delivery service into the Northeastern United States. The company anticipates that to accommodate this expansion it will need between 35 and 80 staffed delivery vehicles. Transworld is currently moving 35 of its own vehicles, with drivers, into the Northeast. The daily cost of operating its own fleet is $730 per vehicle, while the daily cost of leasing a vehicle and driver is expected to be $1,300 per vehicle. Using an expected value approach, should Transworld purchase additional vehicles and hire additional drivers? If so, how many would you recommend?

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Transworld Deliveries is expanding its contract home delivery service into the Northeastern United S...

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