Answered step by step
Verified Expert Solution
Question
1 Approved Answer
1. Otis Vision Associates (OVA) specializes in laser-assisted corrective eye surgery. Prospective patients make appointments for prescreening exams to determine their candidacy for the surgery.
1. Otis Vision Associates (OVA) specializes in laser-assisted corrective eye surgery. Prospective patients make appointments for prescreening exams to determine their candidacy for the surgery. The prescreening fee is $250. The weekly demand is 150, and about 12% 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 less a $25 processing fee. OVA 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. Complete the spreadsheet model for calculating net revenue, assume they accept appointments for all demands. (Round to 0 decimals when calculating show up) 2. Find the net revenue and number overbooked if 140 through 150 appointments are taken. What is the optimal number of appointments to be made? 3. If no show rate is now 15%, what is the optimal number of appointments to be made
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started