This TI-86 Calculator module helps business owners and students quickly find the break-even point or any missing variable in the fundamental business equilibrium equation: Fixed Costs, Price, Variable Costs, and Quantity.
TI-86 Calculator
Leave one field blank to solve for it.
TI-86 Calculator Formula
F = Q × (P - V)
Source: Investopedia – Break-Even Point
Variables:
- Quantity (Q): The number of units produced or sold.
- Price (P): The selling price per unit.
- Variable Cost (V): The cost incurred per unit produced (materials, labor).
- Fixed Costs (F): Costs that do not change with production levels (rent, salaries).
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What is TI-86 Calculator?
The TI-86 calculator logic applied to business helps determine the Break-Even Point (BEP). This is the stage at which total costs and total revenue are exactly equal, meaning your business is neither making a profit nor incurring a loss.
Professional analysts use this TI-86 based logic to perform “What-If” scenarios. For example, if you increase your price (P), how many fewer units (Q) can you sell while still covering your fixed costs (F)? Understanding these relationships is critical for pricing strategy and financial sustainability.
How to Calculate TI-86 Calculator (Example)
Suppose you have the following data:
- Fixed Costs (F) = $10,000
- Selling Price (P) = $50
- Variable Cost (V) = $30
- Formula: Q = F / (P – V)
- Calculation: 10,000 / (50 – 30) = 10,000 / 20 = 500 units.
Frequently Asked Questions (FAQ)
What is the difference between fixed and variable costs?
Fixed costs remain constant regardless of production (like rent), while variable costs scale with the number of units produced (like raw materials).
Can the TI-86 calculator solve for price?
Yes, if you know your target quantity, fixed costs, and variable costs, the formula can be rearranged to find the minimum price required to break even.
What happens if Price is less than Variable Cost?
If P < V, you lose money on every unit sold, and you can never reach a break-even point regardless of volume. This results in a "Non-Physical" or negative result in the calculator.
Is Break-Even the same as Profit?
No. Break-even is the zero-profit point. Any units sold above the break-even quantity contribute directly to your net profit.