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, 700 units at $300 each) Variable costs (10,700 units at $240 each). Contribution margin Fixed costs Income $ 3,210,000 2,568,000 642,000 504,000 $ 138,000 Exercise 5-12 (Algo) Target Income and margin of safety LO C2 1. Assume Hudson has a target income of $161,000. 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.) 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 (11,000 units at $300 each) Variable costs (11,000 units at $240 each) Contribution margin Fixed costs Income $ 3,300,000 2,640,000 660,000 360,000 $ 300,000 Exercise 5-12 (Algo) Target Income and margin of safety LO C2 1. Assume Hudson has a target income of $158,000. 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.)