Sales $(11,500$ units at $$225$ each$)$ $ $2,587,500$

Variable costs $(11,500$ units at $$180$ each$)2,070,000$

Contribution margin $517,500$

Fixed costs $360,000$

Income $ $157,500$

$1.$ Assume Hudson has a target income of $$154,000.$ 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$)?$