The formula to calculate the Expected Revenue (ER) is:
\[ ER = EP + EC \]
Where:
Expected Revenue is the total amount of revenue anticipated from a business activity, calculated by adding the expected profit to the expected cost. This metric is useful for financial planning and forecasting.
Let's assume the following values:
Using the formula to calculate the Expected Revenue (ER):
\[ ER = EP + EC = 5000 + 2000 = 7000 \text{ dollars} \]
The Expected Revenue (ER) is $7000.