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 believes it should have given its No. 3 peaches to charity and saved its efforts. GEORGIA ORCHARDS Income Statement For Year Ended December 31, 2013 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. 3: 824,000 lbs. @ $0.25/lb Total sales $206,000 $1,030,000 Costs Tree pruning and care 128,750 128,750 412,000 669,500 @ $0.50/lb Picking, sorting, and grading 25,750 25,750 82,400 133,900 @ $0.10/lb 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