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, 2019 No. 1 No. 2 No. 3 Combined Sales (by grade) No. 1: 300,000 Ibs. @ $1.50/lb $450,000 No. 2: 300,000 Ibs. @ $1.00/lb $300,000 No. 3: 750,000 Ibs. @ $0.25/lb $ 187,500 Total sales $937,500 Costs Tree pruning and care @ $0.30/lb 90,000 90,000 225,000 405,000 Picking, sorting, and grading @ $0.15/1b 45,000 45,000 112,500 202,500 Delivery costs 15,000 15,000 37,500 67,500 Total costs 150,000 150,000 375,000 675,000 Net income (loss) $300,000 $150,000 $(187,500) $262,500 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 $30,000 of the $67,500 relates to crating the No. 1 and No. 2 peaches and hauling them to the buyer. The remaining $37,500 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, 2019 No. 1 No. 2 No. 3 Combined Costs Total costs 0 0 0 0 $ 0 $ 0 $ 0 $ 0