Required Information Use the following Information for the Exercises below. (Algo) [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 (10,200 units at $225 each) Variable costs (10,200 units at $180 each) Contribution margin Fixed costs Income $ 2,295,000 1,836,000 459,000 360,000 $ 99,000 Exercise 5-12 (Algo) Target income and margin of safety LO C2 1. Assume Hudson has a target income of $168,000. 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. Amount of sales 2. Margin of safety $ 2,590,000 30.5 %