R&R Tax Service offers tax and consulting services to individuals and small businesses. Data for fees and costs for three types of tax returns follow. Fixed costs total $51,520. Variable Cost Type of Return Sales Mix Fee Charged per Return Easy Moderate 30% 10% $ 70 $ 40 Business 60% 170 410 100 250 (1) Determine the weighted-average contribution margin. Easy Moderate Business Sales mix Contribution margin per return Total per unit 30% $ 30.00 9.00 10% 70.00 7.00 60% 160.00 96.00 Weighted-average contribution margin $ 112.00 (2) Determine the break-even point in units using the weighted-average contribution margin. Numerator: Total fixed costs Denominator: II Break Even Units Weighted-average contribution margin per unit = Break even units (2) Determine the break-even point in units using the weighted-average contribution margin. Numerator: Total fixed costs Denominator: Break Even Units Weighted-average contribution margin per unit Break even units 0 (3) Determine the number of units of each product that will be sold at the break-even point. Number of units to break even. Sales mix Easy Moderate Business Units sales at the break-even point Required information [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 (9,900 units at $225 each) Variable costs (9,900 units at $180 each) Contribution margin Fixed costs Income $ 2,227,500 1,782,000 445,500 342,000 $ 103,500 1. Assume Hudson has a target income of $165,000. 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.) 1. Amount of sales 2. Margin of safety %