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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 $(10,400$ units at $$280$ each$)$ $ $2,912,000$

Variable costs $(10,400$ units at $$210$ each$)2,184,000$

Contribution margin $728,000$

Fixed costs $567,000$

Income $ $161,000$

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

$1.$ Assume Hudson has a target income of $$170,000.$ 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.$)$