Regarding profits ....
Raw material is actually negligible cost. How much does it really cost for the LED, driver, reflector, lens, body, etc? I don't know, but I would be surprised if it's even $100 if purchased in bulk. I'm not in the business, so I could be way off.
However, we have to factor in R&D. It's like drug companies ... some of the drugs/medication cost like $2.00 per pill, yet the raw material cost is pennies. Another example is custom knifemaker's cost for premium steel and handles is probably about $50 or less, but charges $500+. We're paying $450+ extra for their skills, their devotion to learn the art to turn a useless steel into functional and sometimes artistic tool, their equipment rental, and ... they do have to make money to survive.
P.S. Did you know that movie theater's primary revenue is from soda and popcorns and not the movies themselves?