Required information {The following information applies to the questions displayed below.] 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: 272,500 lbs. @ $1.80/lb $490, 500 No. 2: 272,500 lbs. @ $1.40/lb $381,500 No. 3: 872,000 lbs. O $0.25/lb $ 218,000 Total sales $1,090,000 Costs Tree pruning and care $0.50/Ib 136,250 136, 250 436,000 708,500 Picking, sorting, and grading @ $0.10/1b 27,250 27, 250 87,200 141,700 Delivery costs 16, 600 16, 600 39,000 72,200 Total costs 180, 100 180, 100 562,200 922,400 Net income (los) $310, 400 $201.400 $(344,200) $ 167, 600 In preparing this statement, the company allocated joint costs among the grades on a physical basis as an equal amount Ann The Rain Athen they are the in 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 $33,200 of the $72,200 relates to crating the No. 1 and No. 2 peaches and hauling them to the buyer. The remaining $39,000 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