Fact Checked by: David Chen, CFA
Senior Financial Analyst with 15+ years of experience in corporate valuation.
Analyze your business efficiency with our TI-86 Calculator module. Solve for the Break-Even Point, Price, or Costs by entering any three known variables.
ti 86 calculator
ti 86 calculator Formula:
To find the Break-Even Quantity specifically:
Source: Investopedia Financial Definitions
Variables:
- Fixed Costs (F): Total expenses that do not change with production volume (e.g., rent).
- Price per Unit (P): The selling price of a single unit of your product.
- Variable Cost per Unit (V): Costs that vary directly with production (e.g., materials).
- Quantity (Q): The number of units produced or sold.
Related Calculators:
- Operating Margin Calculator
- Gross Profit Margin Guide
- Inventory Turnover Ratio Tool
- Contribution Margin Ratio
What is ti 86 calculator?
The TI-86 calculator logic for business often revolves around the Break-Even Point (BEP). The BEP is the stage where total revenue equals total costs, meaning the business is neither making a profit nor incurring a loss.
Using a TI-86 style solver allows entrepreneurs and students to quickly determine how many units they must sell to cover their initial investment. It is a fundamental tool for risk assessment and pricing strategy.
How to Calculate ti 86 calculator (Example):
- Identify your fixed costs ($10,000).
- Determine your selling price per unit ($100).
- Calculate the variable cost per unit ($60).
- Subtract variable cost from price ($100 – $60 = $40 contribution margin).
- Divide fixed costs by the margin ($10,000 / $40 = 250 units).
Frequently Asked Questions (FAQ):
What if the variable cost is higher than the price?
If V > P, the business will lose money on every unit sold, and a break-even point is mathematically impossible.
How do I lower my break-even point?
You can lower the BEP by reducing fixed costs, reducing variable costs, or increasing the unit price.
Is the TI-86 still relevant for finance?
Yes, its equation solver and list functions make it excellent for repetitive financial modeling and business calculus.
Can I use this for service-based businesses?
Absolutely. Instead of “units,” use “hours of service” or “number of clients” as your Quantity variable.