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Hudson Company reports the following contribution margin income statement.

HUDSON COMPANY
Contribution Margin Income Statement
For Year Ended December 31
Sales (10,100 units at $300 each)	$ 3,030,000
Variable costs (10,100 units at $240 each)	2,424,000
Contribution margin	606,000
Fixed costs	468,000
Income	$ 138,000

I thought it was 25% originally but can't quite figure out what I am doing wrong.

1. Assume Hudson has a target income of $167,000. 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