DY the thrust of my comment was correcting the OP’s oversimplification
“the cost of a product is based on raw materials + direct labor (how much the worker works X wage) + manufacturing overhead, which is computed based off of labor costs (like .25 of labor costs)”
This is not all there is, what is probably more important is what the public is welling (or has available) to spend on the item. I can have a cheap item that costs me 0.50 that only I know how to make but that is very popular and charge a lot of money. On the other hand if there is an expensive item that is in little demand I cant charge the cost and might have to sell it a loss.