[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 (9,600 units at $225 each)	$ 2,160,000
Variable costs (9,600 units at $180 each)	1,728,000
Contribution margin	432,000
Fixed costs	324,000
Income	$ 108,000

Exercise 5-11 (Static) Computing break-even units and sales LO P2

1. Compute break-even point in units. 2. Compute break-even point in sales dollars.

3. Assume Hudson has a target income of $162,000. What amount of sales dollars is needed to produce this target income? 4. If Hudson achieves its target income, what is its margin of safety (in percent)? (Round your answer to 1 decimal place.)