
I get the impression that the OP isn't taking the moral high ground about the fact that her friend is making money, but more on the fact that she is breeding from un health tested dogs without the best pedigree behind them.
I'm not a breeder, but I don't not begrudge others any money they may make from a litter, provided they have gone about it in the right way, and it seems that the ones who do it in the right way will make the least profit (and often a loss) because of the costs of health test and all of the proper equipment & care.
Sorry - I'm on my soap box again today :-)
Claire