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 $315,000 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	$	13.00	per gallon		11,600	gallons
Heating Oil	$	7.00	per gallon		18,200	gallons
Jet Fuel	$	19.00	per gallon		2,800	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	$	54,640	$	17.40	per gallon
Heating Oil	$	77,580	$	12.40	per gallon
Jet Fuel	$	29,360	$	26.40	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?