HotPie's Bakery's #1 selling product is the Walder Pie. Use this financial information to answer the question.Sales and Cost Information for Walder PiesFinancial Information at 80% capacity Units and Per Unit Costs DollarsSales 10,000 50,000Direct Materials 1.00 10,000Direct Labor 1.60 16,000Variable OH 0.50 5,000Fixed OH 0.75 7,500HotPie has discovered that 10% of the time, the chef forgets to brown the butter, making the Walder Pies defective. They can sell the pies to Ramsey Bolton to feed to his dogs for $2/pie. Alternatively, they can rework the pies for an additional per unit cost of $1 in direct materials, $2 in direct labor and $0.10 in variable overhead. the reworked pies can be sold for $5/pie.How much will HotPie make if they sell the defective pies to Ramsey Bolton?Group of answer choices1,0001,2505,0002,000
