Question: Bright Red Cannery makes three products from a single joint process. For 2013, the cannery processed all three products beyond split-off. The following data were

Bright Red Cannery makes three products from a single joint process. For 2013, the cannery processed all three products beyond split-off. The following data were generated for the year:

Analysis of 2013 market data reveals that candied apples, apple jelly, and apple jam could have been sold at split-off for $ 670,000, $ 730,000, and $ 260,000, respectively.
a. Based on hindsight, evaluate management€™s production decisions in 2013.
b. How much additional profit could the company have generated in 2013 if it had made optimal decisions atsplit-off?

Joint Product Total Revenue Candied apples Apple jelly Apple jam Incremental Separate Cost 526,000 32,000 15,000 $690,000 775,000 271,000

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