What the hell is going on with shops?

Just looked at the transmission book and it said with a 5.7 in a 2005 dodge 1500 it has a 545rfe which is a solenoid block and that is not a $110.00 dollar part,i think it is closer to $400.00.
If the shop is going to warranty the repair i would assume they will be replacing the solenoid block and the worn tcc valve in the pump along with the torque converter.
The labor,parts and fluid sounds close to $1100.00 to me.