As a knitter of kilt hose, I agree she is not thinking of charging nearly enough for her time and skill. Unless, and it sounds like she is, she is a very,very fast knitter. Even at that, she is giving them away. I'd charge at least $100 for the most simple of patterns to anywhere from $150-up for the fancier ones. She's making handknit hose, not machine made.
I'm a fairly fast knitter if I am able knit without a lot of interruption and could possibly make two pair of hose a week, provided I worked steadily for 10-12 hours a day and depending upon the complexity of the pattern-even working two at one time I couldn't justify my time, skills and materials with such a small amount.
I hope she will re-consider and take into account what her time and skills are really worth and charge enough to pay herself a little salary for all her hard work.