HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales (10,400 units at $280 each) Variable costs (10,400 units at $210 each) Contribution margin Fixed costs Income $ 2,912,000 2,184,000 728,000 567,000 $ 161,000 1. Assume Hudson has a target income of $170,000. What amount of sales (in dollars) is needed to produce this target income? 2. If Hudson achieves its target income, what is its margin of safety (in percent)? Note: Round your answer to 1 decimal place. Answer is complete but not entirely correct. 1. Dollar sales for target income $ 2,608,000 2. Margin of safety 23.0 %