The meaning of the $5 AM/FM clock radio

I bought a clock radio for the kids today. It was $5.00. I'd normally not bother with anything that cheap, but in this case all we wanted was a working, viewable clock. Also, I wanted to see what I got for $5.00.

Target : TruTech AM/FM Clock Radio - TCR1276
Big red LCD readout
Top snooze button is easily accessible
UL listed
2-1/4Hx5Wx5-4/5L"; 1.05 lbs.

It seems to work. Optional battery backup. As well laid out as any I've bought. Simple to use. Sounds better than it should. Comes in a solid cardboard box with some bubblewrap and directions (battery not included).

What does it mean that Target can sell an own-brand clock radio for $5.00? I'd have thought shipping, packaging, shelf-space, etc would eat up most of that. Did that radio cost $1 to manufacture?

So we see why the Fed has stopped raising interest rates ...