10. 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: 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 are refunded 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 that 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.