Financial Analyst & Quantitative Specialist | Expert in Calculators & Business Modeling
This TI-85 calculator specialized module provides a professional-grade interface for calculating the Break-Even Point (BEP). Whether you are a business owner or a finance student, this tool simplifies complex algebraic rearrangements to find your target quantity, price, or costs instantly.
TI-85 Calculator
Enter any three variables to solve for the fourth.
TI-85 Calculator Formula
Rearranged: $$ F = Q \times (P – V) $$
Formula Source: Investopedia – Break-Even Point (BEP)
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 item.
- Variable Cost per Unit (V): Costs that vary directly with production (e.g., raw materials).
- Quantity (Q): The number of units produced or sold.
Related Calculators:
What is TI-85 Calculator (BEP)?
The TI-85 calculator module for Break-Even Analysis is a vital financial tool used to determine the exact point where total revenue equals total costs. At this point, a business neither makes a profit nor incurs a loss.
Using this calculator helps managers understand the “safety margin” and how changes in pricing or cost structures impact the company’s bottom line. It is the cornerstone of quantitative business strategy.
How to Calculate TI-85 Calculator (Example)
- Identify your fixed costs (e.g., $10,000).
- Determine your selling price per unit (e.g., $50).
- Subtract the variable cost per unit (e.g., $30) from the price to get the contribution margin ($20).
- Divide the fixed costs by the contribution margin: $10,000 / $20 = 500 units.
Frequently Asked Questions (FAQ)
What happens if variable cost is higher than price?
If V > P, the business will never break even as every sale increases the total loss.
Why is it called TI-85 Calculator?
The TI-85 was a famous graphing calculator known for its ability to handle complex equations, which inspired this digital solver logic.
Can I use this for service businesses?
Yes, simply treat the “unit” as an hour of service or a single contract.
What are examples of fixed costs?
Common examples include office rent, salaries, insurance, and equipment depreciation.