[1] Actual production costs--typesetting, eBook creation, etc.--are dropping rapidly, every year. One result is that the U.S. typesetting industry has practically been destroyed. Everything is moving offshore. This is starting to happen for some editorial functions, too (especially for higher education books). Your college textbook may have been copyedited in India.
[2] Most everyone in publishing that I know makes a pitiful amount of money. I honestly don't know how many of them manage to live in the NYC area. Certainly none of the people I know who work in Manhattan live in Manhattan!
[3] If this forum is like any of the others I frequent, someone will soon chime in to explain that prices are set by the market, and that it's not a matter of adding some fixed markup to the cost of production
Dave