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 (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 Exercise 18-12 (Algo) Target income and margin of safety LO C2 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.) Answer is complete but not entirely correct. 1. Amount of sales $ 2,535,075 ( 2. Margin of safety 32.6 %