Enter the expected profit (\$) and the expected cost (\$) into the calculator to determine the Expected Revenue.

## Expected Revenue Formula

The following formula is used to calculate the Expected Revenue.

ER = EP + EC

• Where ER is the Expected Revenue (\$)
• EP is the expected profit (\$)
• EC is the expected cost (\$)

## How to Calculate Expected Revenue?

The following example problems outline how to calculate Expected Revenue.

Example Problem #1:

1. First, determine the expected profit (\$). In this example, the expected profit (\$) is given as 58.
2. Next, determine the expected cost (\$). For this problem, the expected cost (\$) is given as 2.
3. Finally, calculate the Expected Revenue using the equation above:

ER = EP + EC

The values given above are inserted into the equation below:

ER = 58 + 2 = 60 (\$)

Example Problem #2:

The variables needed for this problem are provided below:

expected profit (\$) = 90

expected cost (\$) = 10

Entering these values and solving gives:

ER = 90 + 10 = 100 (\$)