1.

Hudson Co. reports the contribution margin income statement for 2015.

HUDSON CO.
Contribution Margin Income Statement
For Year Ended December 31, 2015
Sales (9,500 units at $316 each)	$	3,002,000
Variable costs (9,500 units at $237 each)		2,251,500
Contribution margin	$	750,500
Fixed costs		474,000
Pretax income	$	276,500

Assume Hudson Co. has a target pretax income of $161,000 for 2016. What amount of sales (in dollars) is needed to produce this target income?

Amount of sales

If Hudson achieves its target pretax income for 2016, what is its margin of safety (in percent)? (Round your answer to 1 decimal place.)

Margin of safety

%