Use the following information for the Exercises below. [The following information applies to the questions displayed below.] Hudson Co. reports the contribution margin income statement for 2019. HUDSON Co. Contribution Margin Income Statement For Year Ended December 31, 2019 Sales (10,400 units at $280 each) Variable costs (10,400 units at $210 each) Contribution margin Fixed costs Pretax income $2,912,000 2,184,000 728,000 567,000 $ 161,000 Exercise 18-17 Target income and margin of safety (in dollars) LO C2 1. Assume Hudson Co. has a target pretax income of $170,000 for 2020. What amount of sales (in dollars) is needed to produce this target income? 2. If Hudson achieves its target pretax income for 2020, what is its margin of safety (in percent)? (Round your answer to 1 decimal place.) Answer is not complete. 1. Amount of sales Margin of safety 2. 23.0 % R&R Tax Service offers tax and consulting services to individuals and small businesses. Data for fees and costs of three types of tax returns follow. R&R provides services in the ratio of 4:3:3 (easy, moderate, business). Fixed costs total $18,285 for the tax season. Type of Return Easy (form 1040EZ) Moderate (form 1040) Business Fee Charged $ 58 133 283 Variable Cost per Return $ 34 79 104 Fee Charged Total per composite unit (1) Determine the selling price per composite unit. Rat Easy (form 1040EZ) Moderate (form 1040) Business 4 $ 58.00 3 133.00 399.00 3 283.00 849.00 Variable cost per return Total per composite unit (2) Determine the variable costs per composite unit. Ratio Easy (form 1040EZ) Moderate (form 1040) Business Contribution margin per composite unit