I honestly do not mean to be rude here, however I must ask who in this scenario has the PUPPY's best interest at heart?
I'm probably going to regret saying anything about this on a quilting board, but you chose to vent here, so for the sake of the DOGS I am going to point out the obvious.
Breeders have a responsibility to take back puppies that are not working out, for any reason, to keep them as long as it takes to find an appropriate home for them, and to never ever take their puppies to animal shelters. People who choose to bring litters into a world that is overpopulated with dogs, have a responsibility to place their puppies in situations where those animals will be cared for forever.
If your friend could not afford to pay $50 for a puppy, did you wonder how could she afford a trip to the vet for shots, or if there was an accident and the pup needed more than routine veterinary care how she could pay for all of that?
Also, I can't help but wonder how can you put your own bitch through the stress of having two litters in less than a year?