How do I know what price I should be selling my handmade items at?

You are making it too complicated. You need to average the price out over your stock of dolls. Customers expect similar sized dolls to be the same price.

They do not understand the nuance of difference between 1 square inch of an expensive fabric and 1 square inch of a cheap one. You also have to consider the cost of similar items locally. An expensive dress customers can recognize.

And would pay for but they will not pay extra for an expensive trim.

I cant really gove you an answer,but what I can give you is a way to a solution, that is you have to find the anglde that you relate to or peaks your interest. A good paper is one that people get drawn into because it reaches them ln some way.As for me WW11 to me, I think of the holocaust and the effect it had on the survivors, their families and those who stood by and did nothing until it was too late.