I would consider labor part of the goods produced and profit is on top of that. I'm in commercial construction, and whenever we put out a quote/bid, we will break it down labor, materials and consumables. We will then mark the whole thing up a percentage for OH&P (overhead & profit). This is standard practice in our neck of the woods.
Although personally, when i quote someone for a woodworking project i only give them a lump sum, no breakdown of labor/mat/cons. and if it a person i "like" or am just enjoying the hobby/project, i wont mark up my materials. But if its a job i dont want or a person i dont feel like dealing with, my markup goes pretty high. And if i land a job like that, at least ill make some good money for my time spent.
Also, some people seem to think that profit is a "four letter word." There is nothing wrong with trying to make money. Without profit, you are not successfully running a business.
Good luck.
Nick
"there is no such thing as a mistake in woodworking, only opportunities to re-assess the design"