Market dynamics determine price points, not what it costs to make them. The market is flooded with good scopes that were better values than the leupold VX3 line and leupold was losing sales, hence the price drop.
Don't overthink it. Companies price their products based upon what the market will bear, manufacturing costs have a lot less to do with it.
This costs come into play once they lose margins/share. Then they'll try to cut costs, but by that point, it is to maintain margins; not to affect prices.
