There is a store configuration setting in the Sales section of the Store Config module that you can check if, by default, you do not want items to be sold below cost price:
When this option is checked, you cannot sell an item below cost, which is a good thing... most of the time. We added a new option (highlighted below) in the Items screen that will allow you to override this option for specific items. You will find this option in the Pricing tab of the Items screen, and it will ONLY be displayed if the store configuration option is checked.
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