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 Decenber 31, 2017 No. 1 No. 2 No. 3 Combined Sales (by grade) No. 1 257.500 lbs. $1.80/lb $463,500 No. 2: 257.500 lbs. @ $1.40/lb $360,500 No. 31 824.000 lbs $0.25/6b $ 206,000 Total sales $1,030,000 Costs Tree pruning and care $0.50/Ib 128,750 120.750 412,000 669,500 Picking, sorting, and grading @ $0.10/1b 25,750 25,750 82,400 133, 900 Delivery costs 16.000 16,000 38.400 70.400 Total costs 170, 500 170, 500 532, 800 873, 800 Net income (loss) $293,000 $190,000 $(326, 800) $ 156,200 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 $32,000 of the $70,400 relates to crating the No. 1 and No. 2 peaches and hauling them to the buyer. The remaining $38,400 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.) GEORGIA ORCHARDS Income Statement For Year Ended December 31, 2018 No. 1 No. 2 No. 3 Combined Costs Total costs O 0 0 $ 0 0 $ 0 $ 0 $ 0