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Required information

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 $(10,600$ units at $$300$ each$)$

Variable costs $(10,600$ units at $$240$ each$)$

Contribution margin

Fixed costs

Exercise $21-12($Algo$)$ Target income and margin of safety LO C$2$

Assume Hudson has a target income of $$172,000.$ What amount of sales $($in dollars$)$ is needed to produce this target income?

If Hudson achieves its target income, what is its margin of safety $($in percent$)?$

Note: Round your answer to $1$ decimal place.

Dollar sales for target income

Margin of safety