Quoted from vid1900:

High-flex wire (good for 14 million flexes) is $5 a foot.
RGB LED remote control $2
Populated power distribution board $5
Connector cables $7
Clear flipper bat pairs are usually $10
Hollow steel shaft .30
Knurling operation for shafts .50
Black flipper rubber pair $1
RGB LED strip .50
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Then you have all your prototyping costs, jigging costs, "set up" costs from the plastic molder, labor costs, liability insurance if they cause a game and/or house to burn down.....
Finally add in your much needed profit on such a low volume item, and you can see how the price comes about.