I am (somewhat ) surprised that your local council could not give you an answer. I knew I had read this in some BSA publication, and after a bit of searching I found what you needed in "The Cub Scout Leader Book". A publication all Pack leaders should have at hand.
PACK MONEY-EARNING PROJECTS
Finances for the purchase of den and pack flags or other items or equipment not provided for by the
pack budget may be obtained from pack money-earning projects. Before deciding on money-earning
projects, the pack should have a clear understanding of BSA rules regarding these matters.
A pack must follow certain rules when planning a money-earning project:
- Money-earning projects may be conducted only with council approval. File a Unit
Money-Earning Application with your local council service center to obtain approval.
- Money-earning projects are pack, not den, activities and should be suited to the ages and
abilities of the boys. Proper adult supervision must be provided.
- The pack committee and chartered organization must approve all money-earning projects.
The project must be implemented because there is a real Scouting need for it, not merely
because someone offered an attractive plan. It is best if Cub Scouts can earn their own way.
So - Per BSA, no den money earning activities allowed.
Also, on the DL pouting about the Cubmaster not making him CC - A Cubmaster does NOT have the ability to appoint, or even approve, a Committee Chair, much less "fire" one.
A BSA unit is "owned" by it's Charter Organization. Take a look at a BSA Adult Application, and see who approves the application for each role in a Pack. The Cubmaster (CM) position is approved by the Committee Chair (CC), and either the Charter Organization Representative (COR), or the head of the Charter Organization (IH). The Committee Chair is approved by either the Charter Organization Representative, or the head of the Charter Organization. NOT the Cubmaster.
How are this fellow's Scouts doing? Is the den advancing? Are the boys having fun? Does the den participate in the monthly Pack meetings, and Pack activities?
If the Scouts in the den are happy, and doing well, then you might counsel the CM to invite the den leader, the CC, and possibly the COR, to a friendly cuppa at your nearest coffee shop, and have a discussion about how a Pack works, and how his attitude is affecting things.
If the Scouts in his den are NOT happy, and doing well, then you might want to counsel the CM to get together with the CC, and COR, and discuss replacement options.
Gook luck!