Basic accounting question for a new business

[Albert]

Basic accounting question for a new business

Hi there,

So this is definitely not a challenge to you guys, but for a fella like myself it is pretty new for me. I would like to understand how do I use the breakeven formula for a business I'm planning, and since it's considered a retail business (selling toys), my products will vary and thus the prices will be different for each product. How do I determine what is the price I use for the formula?

As far as I have learned, the basic formula is BEP=FC/(Price-VC). Is that correct? If so, how do I plug in the price when I offer items costing and priced as follows for example:

Item 1 - costs $3 price $6

Item 2 - costs $1 price $3

Item 3 - costs $7 price $13

Your help is much appreciated.

Thanks!

submitted by /u/Saltoearth
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