Georgia Orchards produced a good crop of peaches this year. After preparing the following income statement, the company is concerned about the net loss on its No. 3 peaches.

GEORGIA ORCHARDS Income Statement For Year Ended December 31, 2017
	No. 1			No. 2			No. 3				Combined
Sales (by grade)
No. 1: 380,000 Ibs. @ $1.50/lb	$	570,000
No. 2: 380,000 Ibs. @ $0.90/lb				$	342,000
No. 3: 1,140,000 Ibs. @ $0.20/lb							$	228,000
Total sales											$	1,140,000
Costs
Tree pruning and care @ $0.30/Ib		114,000			114,000			342,000				570,000
Picking, sorting, and grading @ $0.10/Ib		38,000			38,000			114,000				190,000
Delivery costs		16,800			16,800			39,300				72,900
Total costs		168,800			168,800			495,300				832,900
Net income (loss)	$	401,200		$	173,200		$	(267,300	)		$	307,100

In preparing this statement, the company allocated joint costs among the grades on a physical basis as an equal amount per pound. The companys delivery cost records show that $33,600 of the $72,900 relates to crating the No. 1 and No. 2 peaches and hauling them to the buyer. The remaining $39,300 of delivery costs is for crating the No. 3 peaches and hauling them to the cannery.

2. Using your answers to part 1, prepare an income statement using the joint costs allocated on a sales value basis. (Do not round intermediate calculations.)