Required information [The following information applies to the questions displayed below.] Hudson Company reports the following contribution margin income statement. HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31. Sales (11,200 units at $280 each) Variable costs (11,200 units at $210 each) Contribution margin $ 3,136,000 2,352,000 784,000 567,000 Fixed costs Income $ 217,000 1. Assume Hudson has a target income of $156,000. 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.) Answer is complete but not entirely correct. 1. Dollar sales for target income $ 2,268,000 2. Margin of safety 25.0 %