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. Combined GEORGIA ORCHARDS Income Statement For Year Ended December 31, 2019 No. 1 No. 2 No. 3 Sales (by grade) No. 1: 257,500 Ibs. @ $1.80/lb $463,500 No. 2: 257, 500 Ibs. @ $1.40/lb $360,500 No. 3: 824,000 Ibs. @ $0.25/lb $ 206,000 Total sales Costs Tree pruning and care @ $0.50/lb 128,750 128,750 412,000 Picking, sorting, and grading @ $0.10/1b 25,750 25,750 82,400 Delivery costs 16,000 16,000 38, 400 Total costs 170,500 170,500 532,800 Net income (loss) $293, 000 $190,000 $(326, 800) $1,030,000 669,500 133, 900 70, 400 873, 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. x Indirect Cost Allocated Cost Tree Pruning and Care: Grade Allocation Base Nos. Sales value No. 1 $ 463,500 No. 2 360,500 No. 3 206,000 Totals 1,030,000 Picking, Sorting, and Grading: Grade Allocation Base Percent of Allocation Base Numerator Denominator % of Total 257,500 0 0 0 0 Percent of Allocation Base x Indirect Cost Allocated Cost Nos. Numerator Denominator No. 1 % of Total 0 0 0 No. 2 No. 3 Totals Delivery: 0 0 Grade Allocation Base Percent of Allocation Base x Indirect Allocated cost Delivery: Grade Allocation Base x Indirect Cost Allocated Cost Nos. No. 1 No. 2 Percent of Allocation Base Numerator Denominator % of Total 0 0 No. 3 Totals Answer is not complete. Combined $1,030,000 GEORGIA ORCHARDS Income Statement For Year Ended December 31, 2019 No. 1 No. 2 No. 3 Sales $463,500 $360,500 $ 206,000 Costs Tree pruning and care 128,750 128,750 412,000 Picking, sorting and 25,750 % grading 25,749 Delivery 16,000 16,000 Total costs 170,500 170,499 412,000 $ $ 293,000 $ 190,001 (206,000) 0 $1,030,000