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 (\$)