Anyone who spins is probably not at all surprised by your figures.
We (our local spinning group) were recently asked to take a table at a local craft fair. None of us spin or knit to sell, but wanted to be at the craft fair to raise awareness of our group, and of spinning in general, so thought we'd better have a few items to sell.
One of our members did a load of research about how to price up handcrafted items to sell. One model that seemed well-supported was to charge
all applicable costs (including detergents, electricity for heating, washing, etc) plus £1 per hour's labour. Yes, that's right, £1/hour.

Not sure what the EU would make of that! Nor of the hours one would have to put in in order to produce a lot of crafted items on top of ones normal daily work!
To put another spin (sic) on Stellan Vert's figures, you're looking at £125/kg, or £6.25/50g for DK yarn produced from your own fleece, where you provide the fleece for nothing. If you try to buy nice 100% wool yarn, you will need to spend something of that order for nice yarn of a single known breed of known provenance. So I'd say it's not out of the way - but I suspect most non-spinners would be, as SV says, stunned.