Georgia Orchards produced a good crop of peaches this year. After preparing the following income statement, the company believes it should have given its No$.3$ peaches to charity and saved its efforts.

GEORGIA ORCHARDS

Income Statement

For Year Ended December $31,2013$In preparing this statement, the company allocated joint costs among the grades on a

physical basis as an equal amount per pound. The company's delivery cost records

show that $$34,000$ of the $$73,500$ relates to crating the No$.1$ and No$.2$ peaches and

hauling them to the buyer. The remaining $$39,500$ of delivery costs is for crating the No$.$

$3$ peaches and hauling them to the cannery.