Sansa Mine extracts three (3) kinds of products (Diamonds, Rubys, and gemstones) in one production process and this results in joint costs of $159,000. Sansa Mine has an option of selling the stones as they are, or they can be process them before selling. As the cost accountant, you have been provided with the following information:

Product Volume Sales Price at Split -off Further Processing Costs Sales Price after Further Processing

Tones

Diamonds 6,000 25.00 83,000 37.00

Rubys 5,000 40.00 58,000 55.00

Gemstones 8,000 55.00 25,000 60.00

Required: Identify which product Sansa Mine should sell at split off point and which ones should be processed further, assuming that all processing costs vary with the level of output. Give reasons for your answer.