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 units at $$300$ each $$3,000,000$

Variable costs units at $$240$ each$),\frac{2,400,000}{600,000}$ Contribution margin

Fixed costs

Income

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

Assume Hudson has a target income of $$166,000.$ What amount of sales $($in dollars$)$ is needed to produce this target income?

If Hudson achieves its target income, what is its margin of safety $($in percent$)?($Round your answer to $1$ decimal place.$)$