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 (10,580 units at $300 each) Variable costs (10,6e0 units at $240 each) Contribution margin Fixed costs Income $ 3,180,880 2,544,000 636,980 488, 880 $ 156,080 1. Assume Hudson has a target income of $172,000. 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.) 1. Dollar sales for target income 2. Margin of safety 96 Required Information [The following information applies to the questions displayed below.) Felix & Company reports the following information. Units Produced Period 1 2 mo 4 5 6 540 948 1,340 1,748 2,148 2,540 2,940 3,348 3,740 Total Costs $ 4,640 3,940 4,340 4,940 4,840 4,240 8,740 16,140 4,940 11,746 8 9 10 (1) Use the high-low method to estimate the fixed and variable components of total costs. (2) Estimate total costs if 2.120 units are produced. 0 High-Low method - Calculation of variable cost per unit Cost at highest volume - Cost at lowest volume Highest volume - Lowest volume High-Low method - Calculation of fixed costs Total cost at the highest volume Variable costs at highest volume Highest volume Variable cost per unit Total variable costs at highest volume Total fixed costs Total cost at the lowest volume Variable costs at lowest volume Lowest volume Variable cost per unit Total variable costs at lowest volume Total fixed costs (2) Estimated cost if 2.120 units are produced: Estimated total cost