Thank you both for your input.
Kodak, after reading your reply, I realize that I should have been more clear about my experience with yorkies. As I said before, I have been searching for the perfect yorkie breeder for nearly a year. Before that, I researched yorkies for quite a while (including the risks of owning tiny dogs) to assure myself that I could provide a superb home (I have 13 yorkie books and magazines on my bookshelf right now- I just counted, lol). I am not an impulse buyer, in fact I've wanted a yorkie since I was a little girl. When I was in high school, I was a volunteer for a rescue organization, and one of my favorite fostering experiences was a little yorkie and her 4 puppies...so I know how challenging it is to protect these little ones from harm.
Thus, I am experienced with yorkies, but I am unexperienced with the process of getting a puppy from a breeder, and that is where I ask for help...
As far as expensive reputible breeders, the price is unimportant to me, as long as I get a healthy puppy that is worth what I pay for. I didn't mean that $800-$1200 was expensive...I actually considered that a relatively low price for a purebred yorkie, and I was just wondering others' opinions on that price.
The breeder that I am in communication with is not exactly local, but only about an hour away, so it will be nice to have her so close. She is one of 20 or so that I have talked to during my breeder search.
Basically, my questions were:
Is it a common and acceptable breeding practice to breed a registered yorkie with an unregistered yorkie?
and
Is $800-$1200 a good price range for the puppies I am considering?