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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 $(10,900$ units at $$225$ each$)$ $ $2,452,500$

Variable costs $(10,900$ units at $$180$ each$)1,962,000$

Contribution margin $490,500$

Fixed costs $387,000$

Income $ $103,500$

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

$1.$ Assume Hudson has a target income of $$159,000.$ 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.$)$