Do the maths yourself.

Assume depreciation on hardware at $ 12 per month
Rackspace at $ 2 per month
Bandwidth at $ 4 per month
5 IPs at $ 2 per month
Electricity (say 100 watt * 24 * 30 * $0.14 *0.001) = $10.08

That gives you a total of $ 30.08

Where does the service and their profit come from?

Something does not add up