Cal11 calculator
Search calculator...

Break Even Point on A T83 Calculator Online

Reviewed by Calculator Editorial Team

The break even point is the level of sales at which total revenue equals total costs, resulting in neither profit nor loss. This calculator helps you determine the break even point using your TI-83 graphing calculator.

What is Break Even Point?

The break even point is a critical financial metric that shows the sales volume needed to cover all costs and avoid losses. It's calculated by determining the point where total revenue equals total costs.

Understanding the break even point helps businesses plan production, pricing, and marketing strategies effectively.

Break Even Formula

The break even point can be calculated using the following formula:

Break Even Point = Fixed Costs / (Selling Price per Unit - Variable Cost per Unit)

Where:

  • Fixed Costs = Total fixed costs (rent, salaries, etc.)
  • Selling Price per Unit = Price at which each unit is sold
  • Variable Cost per Unit = Cost to produce each unit

Using TI-83 for Break Even Calculation

To calculate the break even point on your TI-83 calculator:

  1. Enter the fixed costs in the calculator's memory (e.g., STO 1)
  2. Enter the selling price per unit (e.g., STO 2)
  3. Enter the variable cost per unit (e.g., STO 3)
  4. Use the formula: (STO 1) / (STO 2 - STO 3)
  5. The result will be the break even point in units

Make sure your TI-83 is in the correct mode (e.g., decimal mode) for accurate calculations.

Worked Example

Let's calculate the break even point for a company with:

  • Fixed Costs: $10,000
  • Selling Price per Unit: $50
  • Variable Cost per Unit: $30

Break Even Point = $10,000 / ($50 - $30) = $10,000 / $20 = 500 units

This means the company needs to sell 500 units to cover all costs and break even.

FAQ

What if my variable cost is higher than my selling price?
If your variable cost is higher than your selling price, you cannot break even. You would need to either reduce costs or increase your selling price.
How does the break even point relate to profit?
The break even point is the point where revenue equals costs. Any sales above this point will result in profit, and any sales below will result in a loss.
Can I use this calculator for different currencies?
Yes, you can use any currency as long as you're consistent with the units used in your calculations.