Since they started these 'designer' dogs, EVERYONE is getting a lot of money for mixed breeds. I myself would never pay that much for a mixed breed, especially with no vet visits and no knowledge of history? I guess it's up to you to decide if it is too much, you can always offer less! All the luck!
Yeah, she probably won't sell any unless they're a highly desirable mix (anything with Poodle, small fluffy things, etc.). If they're a large breed mix she'll be lucky to give them away :/.
I think it's reasonable to charge actual expenses for an accidental litter---usually somewhere between $50-$100 depending on what kind of vet care they've gotten. This also weeds out some of the riff-raff (but not all; screening is still important). But more than that isn't reasonable. But that's the free market---if your prices are unreasonable, people won't pay them.
I do hope she plans to spay the mother after this,
Ah, well, she probably will get that price then :/. I don't necessarily think that's a good thing but hopefully they'll all go to good homes. That's the most important.
Try to convince her to keep the puppies until they're 10-12 weeks old. Small breeds benefit from staying with their mother longer, like kittens. 8 weeks is the very minimum, it's even illegal in some places to remove pups from their mother before 8 weeks.