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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 $(11,400$ units at $$225$ each$)$ $ $2,565,000$

Variable costs $(11,400$ units at $$180$ each$)2,052,000$

Contribution margin $513,000$

Fixed costs $360,000$

Income $ $153,000$

Exercise $18-12($Algo$)$ Target income and margin of safety LO C$2$

$1.$ Assume Hudson has a target income of $$150,000.$ 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.$)$