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Hudson Company reports the following contribution margin income statement. HUDSON COMPANYContribution Margin Income StatementFor Year Ended December 31Sales (10,900 units at $225 each)$ 2,452,500Variable costs
Hudson Company reports the following contribution margin income statement.
HUDSON COMPANYContribution Margin Income StatementFor Year Ended December 31Sales (10,900 units at $225 each)$ 2,452,500Variable costs (10,900 units at $180 each)1,962,000Contribution margin490,500Fixed costs387,000Income$ 103,5001. Assume Hudson has a target income of $159,000. 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)? (Round your answer to 1 decimal place.)
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