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, 2015 No. 1 No. 2 No. 3 Combined Sales (by grade) $525,000 No. 1: 350,000 lbs. $1.50/lb No. 2: 350,000 lbs.$0.90/lb No. 3: 600,000 lbs. $0.35/lb Total sales 315,000 $ 210,000 $1,050,000 Costs Tree pruning and care$0.30/lb Picking, sorting, and grading $0.20/lb Delivery costs 105,000 70,000 15,300 05,000 70,000 180,000 120,000 37,800 390,000 260,000 68,400 15,300 Total costs 190,300 190,300 337,800 718,400 Net income (loss) $334,700 124,700 S(127,800) 331,600 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 $30,600 of the $68,400 relates to crating the No. 1 and No. 2 peaches and hauling them to the buyer. The remaining $37,800 of delivery costs is for crating the No. 3 peaches and hauling them to the cannery