Exercise 18-14 Predicting sales and variable costs using contribution margin LO C2 Bloom Company management predicts that it will incur fixed costs of $257,000 and earn pretax income of $459,900 in the next period. Its expected contribution margin ratio is 67%. Required: 1. Compute the amount of total dollar sales. 2. Compute the amount of total variable costs. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the amount of total dollar sales. Dollar Sales Choose Numerator: 1 Choose Denominator: = Total Dollar Sales Total dollar sales Bloom Company management predicts that it will incur fixed costs of $257,000 and earn pretax income of $459,900 in the next period. Its expected contribution margin ratio is 67%. Required: 1. Compute the amount of total dollar sales. 2. Compute the amount of total variable costs. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the amount of total variable costs. Sales Fixed costs Pretax income Variable costs Required information Use the following information for the Exercises below. [The following information applies to the questions displayed below.] Hudson Co. reports the contribution margin income statement for 2019. HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2019 Sales (11,300 units at $175 each) Variable costs (11,300 units at $140 each) Contribution margin Fixed costs Pretax income $1,977,500 1,582,000 395,500 315,000 $ 80,500 Exercise 18-17 Target income and margin of safety (in dollars) LO C2 1. Assume Hudson Co. has a target pretax income of $155,000 for 2020. What amount of sales (in dollars) is needed to produce this target income? 2. If Hudson achieves its target pretax income for 2020, what is its margin of safety (in percent)? (Round your answer to 1 decimal place.) 1. Amount of sales 2. Margin of safety %