Hudson Co. reports the contribution margin income statement for 2019.

1. Assume Hudson Co. has a target pretax income of $172,000 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.)

HUDSON Co. Contribution Margin Income Statement For Year Ended December 31, 2019 Sales (10, 600 units at $300 each) Variable costs (10,600 units at $240 each) Contribution margin Fixed costs Pretax income $3,180,000 2,544,000 636,000 480,000 $ 156,000 1. Amount of sales 2. Margin of safety