25. (Processing beyond split-off) Crews Cannery makes three products in a single joint process. For 2000, the firm processed all three products beyond the splitoff point. The following data are generated for the year:

Joint Product Final Revenues Incremental Separate Costs Candied peaches $62,000 $26,000 Peach jelly 74,000 38,000 Peach jam 27,000 15,000 Analysis of 2000 market data reveals that these three products could have been sold at split-off for $40,000, $40,000, and $10,000, respectively.

a. Evaluate, based on hindsight, management’s production decisions in 2000.

b. How much additional profit could the company have generated in 2000 with a better ability to forecast prices?