How much do you think it costs Glock to make a Glock? I'm guessing about $150 to manufacture a 19.
If it's like most businesses, labor is usually the largest operations cost. Then there's records compliance, reporting compliance, quality control, materials sourcing/acquisition, chemical tests on the materials during fabrication, facilities, equipment, maintenance on facilities and equipment, etc.
When I worked for Pizza Hut in college, a large, pan Supreme pizza that cost the customer $18 only took about $5 worth of ingredients. The ingredients were purchased and processed in mass volumes to keep the average cost down. The "profit" went to overhead, wages and salaries, and corporate costs. If we flubbed up an order, that one re-make ate into the profit by over 30% -- the $18 pizza now cost us $10, and that's only if the manager didn't take the pizza off the check to apologize for the mistake, meaning the store just lost the cost AND the potential profit from two pizza's worth of ingredients.
Yeah, it's easy to get tunnel vision and only see the raw material breakout as "what it costs to make." When you add the labor, overhead, and everything else that goes into the process, I imagine the profit margin is a lot thinner than we'd think.