. Process Further Decision. Silver Bullet Refining produces naphtha, kerosene, and other distillates from a joint process costing \(\$ 120,000\) for a certain volume of crude oil. From this process, 1,000 barrels of naphtha can be produced and are allocated \(\$ 35,000\) of joint costs. This can be sold at the split-off point for \(\$ 60\) per barrel or further processed into other products and sold for \(\$ 85\) per barrel. The processing cost for further refining 1,000 barrels of naphtha is \(\$ 20,000\).

The other distillates can be sold now for \(\$ 80,000\) or processed further for \(\$ 40,000\) and sold for \(\$ 110,000\). Kerosene can be sold for \(\$ 60,000\) at the split-off point. Kerosene is also allocated \(\$ 35,000\) of the joint costs.

\section*{Required:}

1. Which products should be sold at the split-off point or processed further?

2. What is the most Silver Bullet can pay for crude oil and not lose money on the refining process?