I found her comment surprising because she is getting her master's degree in business! I know she isn't trying to exploit me, but I at least thought that she would consider that I should make more than 9.00 for a dozen cupcakes. or 18 dollars for a 9 inch cake. I explained to her what pricing was in the area and she thought it was insane.
That said, she probably should have withheld her advice until she had more information.
This is not unique to making cakes, I've come across this attitude myself in the form of "it's just a web site" and "fixing this computer problem should be easy".