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I am working on a break even point formula. Are my calculations accurate? Am I right to price it at $12? How would I figure

I am working on a break even point formula. Are my calculations accurate? Am I right to price it at $12? How would I figure out how much money I would need to have IN HAND when opening a business, in order to reach that point? Are there any cash flow issues I should consider? Below are the following calculations:

  • Total fixed costs ($3,000)

  • Sales price per unit ($12.01)

  • Variable cost per unit ($1.57)

  • Anticipated unit sales (100,000)

  • Break even point: Fixed costs (Sales price per unit Variable costs per unit) = 288 units

  • contribution margin (sales per unit- variable costs per unit) = $10.44

I think the break even time depends on the price and production volumes. For instance, if the goal is to earn $100,000 in total sales of barbecue cleaner in a given period, I would need to sell 288 units in order to cover our fixed costs. If I sell the anticipated 100,000 units then our profit/loss would be $1,039,000.The product should be priced by using the average selling price formula. Average selling price = total revenue earned by a product number of products sold. $1,200,000 100,000. The selling price would equal $12.00.

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