DEVELOP A SPREADSHEET MODEL FOR CALCULATING NET REVENUE, AND USE DATA TABLES TO STUDY HOW REVENUE IS AFFECTED BY CHANGES IN THE NUMBER OF APPOINTMENTS ACCEPTED AND PATIENT DEMAND.
Koehler Vision Associates (KVA) specializes in laser assisted corrective eye surgery. Prospective patients make appointments for prescreening exams to determine their candidacy for the surgery, and if they qualify, the $300 charge is applied as a deposit for the actual procedure. The weekly demand is 175, and about 15% of prospective patients fail to show up or cancel their exam at the last minute. Patients that do not show up do not pay the prescreening fee. KVA can handle 125 patients per week and is considering overbooking its appointments to reduce the lost revenue associated with cancellations. However, any patient who is overbooked may spread unfavorable comments about the company; thus, the overbooking cost is estimated to be $125, the value of a referral. Develop a spreadsheet model for calculating net revenue, and use data tables to study how revenue is affected by changes in the number of appointments accepted and patient demand.
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