Don't worry, I know all of that. I can give you a cost analysis given the proper data if you want. ;) You also have cost of storage, delivery, administration, rates, etc etc etc. Lots of etc's. :)
But it still goes to show what they can offer to really sell these items at. They'd be insane to sell at a loss rather than just retract the listing. But this is Target and they aren't making the best decisions right now. They aren't really in a position to keep giving away goodwill.
Also I know people will baulk at it, that is actually quite a small mark up. :)