Koehler Vision Associates specializes in laser-assisted corrective eye surgery.

Question

Koehler Vision Associates specializes in laser-assisted corrective eye surgery. Prospective patients make appointments for prescreening exams to determin their candidacy for the surgery: if they quality, a $250 charge is applied as a deposit for the actual procedure. The weekly demand is 150, and aboua 12% of prospecive patients fail to show up or cancel their exam at the last minute. Patients that do not show up are refunded the prescreening fee less a $25 processing fee. KVA can handle 125 paitnets per week and is considring overbooking its appointments to reduce the lost revenue associated with cancellations. However, any patient that is overbooked may spread unfavorable comments about the company; thus, the overbooking cost is estimated to be $125. Develop a spreadsheet model for calculating net revenue. Find the net revenue and number overbooked if 140 through 150 appointments are taken.

Explanation / Answer

Company Name Deposit per person Demand of patients Total revenue earned ( Demand * total deposit) in $ Actual patients turned up KV capacity patients more than capacity Patients cancelled from 150 num booking Amount returned to cancelled patients ($) i.e 225 $ per patient over booked cost per extra patient ($) Over booked cost ( extra patients than capacity * over booked cost Net Revenue ( Total revenue earned - amount returned to cancelled patients - over booked cost ) kohler Vision 250 150 37500 140 125 15 10 2250 125 1875 33375

Related Questions

Navigate

• Browse (All)
• Browse K
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.