1. Compute Hudson Co.'s break-even point in sales dollars.

2. Assume Hudson Co. has a target pretax income of $156,000 for 2020. What amount of sales (in dollars) is needed to produce this target income? 3. If Hudson achieves its target pretax income for 2020, what is its margin of safety (in percent)? (Round your answer to 1 decimal place.)

Hudson Co. reports the contribution margin income statement for 2019. HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2019 Sales (11,100 units at $375 each) Variable costs (11,100 units at $300 each) Contribution margin Fixed costs Pretax income $4,162,500 3, 330,000 832,500 660,000 $ 172,500