Hudson Co.

Contribution margin income statement

For year ended December 31, 2017

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

Pretax income $157,500

1. Assume Hudson Co. has a target pretax income of $154,000 for 2018. What amount of sales (in dollars) is needed to produce this target income?
2. If Hudson achieves its target pretax income for 2018, what is its margin of safety (in percent)? Round to one decimal point.

Amount of sales = how many dollars?

Margin of Safety = what percent?

Thank you in advance!