The cmplete BA II plus Guide

1. The “Profit” Worksheet: Stop Guessing Your Prices

The BA II Plus has a built-in feature that lets you instantly solve for Cost, Selling Price, or Margin. The rule is simple: If you know two of the numbers, the calculator gives you the third.

How to find it: Press 2nd then PROFIT (it’s on the number 3 key).

The Variables:

• CST (Cost): How much you paid to buy or make the product.
• SEL (Selling Price): How much you charge the customer.
• MAR (Margin): Your profit percentage.

Scenario: The Sneaker Flip Let’s say you found a pair of limited edition Jordans for $200 (Cost). You want to make a 25% profit margin on the sale. What price should you list them for?

The Steps:

1. Enter the Worksheet: Press 2nd then PROFIT.
2. Clear it: Press 2nd then CLR WORK (Always do this!).
3. Enter Cost: Type 200 then press ENTER.
4. Enter Margin: Scroll down to MAR. Type 25 then press ENTER.
5. Solve: Scroll back up to SEL (Selling Price) and press CPT (Compute).

Result: You will see 266.67. Takeaway: If you sold them for $250 thinking you made a quick buck, you actually missed your 25% target. The calculator prevents that mistake.

2. The “Gotcha”: Margin vs. Markup

Be careful! In your Accounting class (and in real life), there is a massive difference between Markup and Margin.

• Markup is based on Cost. (Bought for $100, Markup 50% = Sell for $150).
• Margin is based on Price. (Bought for $100, Sell for $150 = Margin is only 33%!).

Important: The BA II Plus calculates MARGIN. If your boss says “I want a 50% Markup,” do not type 50 into the MAR key. You will underprice your product and get fired. Only use this worksheet when you are calculating Gross Margin or Profit Margin.

3. Breakeven Analysis: The “Survival Number”

The Breakeven Point is the magic number where your Revenue equals your Costs. You aren’t making money yet, but you aren’t losing it either. It answers the question: “How many do I need to sell just to survive?”

The Formula: Breakeven Quantity = Fixed Costs divided by (Price per Unit minus Variable Cost per Unit).

Scenario: The T-Shirt Business

• Fixed Costs: $500 (Website hosting, design fee, printer).
• Selling Price: $25 per shirt.
• Variable Cost: $10 per shirt (The cost of the blank tee + ink).
• Question: How many shirts do I need to sell to make my $500 back?

How to Calculate:

1. First, find your profit per shirt (Contribution Margin): $25 price minus $10 cost = $15.
2. Now, divide your Fixed Costs by that number: $500 divided by 15.

Result: 33.33.

Real World Rule: always Round Up. You can’t sell 0.33 of a shirt. If you sell 33 shirts, you are still losing a few pennies. You need to sell 34 shirts to officially break even.