No idea why people downvoted. This is exactly how people think, and in fact exactly how I was taught in university. We had an exercise in economics where we would be doing exactly that: Buying a machine to build car seats to sell which would make us -$2 profit. Total brain fart.

And here's the thing that is really odd: some companies really survive that way exactly because they make lots of units. E.g. customers may shoot them a few months of costs, just because the customer doesn't want them to die, because they are so cheap and produce so many units.