California Company reports the following sales data for the year ended December 31. Grade of Walnuts Sales Number 1 $ 900,000 Number 2 600,000 Number 3 375,000 Total $ 1,875,000 The company incurred the following joint costs for the year. Tree pruning and care $ 810,000 Pickup, sorting, and grading 405,000 Required: (1) Use the value basis to allocate joint costs to the three grades of walnuts. (2) Compute gross profit for each of the three grades of walnuts