Molo Oil Company produces gasoline, home heating oil, and jet fuel from crude oil in a joint processing operation. Joint processing costs up to the split-off point total $360,000 per month. For financial reporting purposes, the company allocates these costs to the joint products on the basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows:

Product	Selling Price			Monthly Output
Gasoline	$	22.00	per gallon		13,400	gallons
Heating Oil	$	16.00	per gallon		20,900	gallons
Jet Fuel	$	28.00	per gallon		4,600	gallons

Each product can be processed further after the split-off point. Additional processing requires no special facilities. The additional processing costs (per quarter) and unit selling prices after further processing are given below:

Product	Additional Processing Costs		Selling Price
Gasoline	$	75,970	$	27.30	per gallon
Heating Oil	$	109,395	$	22.30	per gallon
Jet Fuel	$	48,260	$	36.30	per gallon

Required:

1. What is the financial advantage (disadvantage) of further processing each of the three products beyond the split-off point?

2. Based on your analysis in requirement 1, which product or products should be sold at the split-off point and which product or products should be processed further?