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Molo Oll Company produces gasoline, home heating oil, and jet fuel from crude oil in a joint processing operation Joint processing costs up to the

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Molo Oll 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 $340,000 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 Gasoline $ 18.ee per gallon Heating oil $ 12.ee per gallon Jet Fuel $ 24.00 per gallon Monthly Output 12,6e8 gallons 19,7ee gallons 3,800 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 Additional Selling Product Processing Costs Price Gasoline $66,090 $22.99 per gallon Heating $94,655 oil $17.90 per gallon Jet Fuel $39,460 $31.90 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 productor products should be processed further? Complete this question by entering your answers in the tabs below. Required 1 Required 2 What is the financial advantage (disadvantage) of further processing each of the three products beyond the split-off point? Home Heating Oil Financial advantage (disadvantage) of further processing Gasoline Jet Fuel 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 productor products should be processed further? Complete this question by entering your answers in the tabs below. Required 1 Required 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? Gasoline Home Heating Oil Jet Fuel Sell at spin-off point? Process further?

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