How much does audio equipment really cost

Generally speaking, I would guess at least 1:5 from manufacturer to MSRP. Dealer cost would be about 40% less than MSRP. Keep in mind that there are spiffs and other incentives/accomodations (free shipping, bulk purchase, etc.) that manufacturers offer to their dealers. So even though a dealer may show you their price list it isn't always what they pay for it. Cables are another story.

I had read before that there is a standard business formula. 20% for manufacturing, 20% for R&D, 20% for sales and marketing, and 40% for the dealer's costs. I think this formula extends beyond audio, pretty much common practice.

Yes depending on the mfg, the dealer mark up is 40-50%.

Happy Listening.