HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales (9,600 units at $225 each) Variable costs (9,600 units at $180 each) Contribution margin Fixed costs Income $2,160,000 1,728,000 432,000 324,000 $108,000 Units sold Selling price per unit Variable cost per unit Target income Required: 9,600 $225 $180 $162,000 1. Assume Hudson has a target income of $162,000. What amount of sales dollars is needed to produce this target income? Dollar sales for target income $2,970,000 2. If Hudson achieves its target income, what is its margin of safety (in percent)? Margin of safety