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 (10,300 units at $375 each) Variable costs (10,300 units at $300 each) Contribution margin. Fixed costs Income $ 3,862,500 3,090,000 772,500 600,000 $ 172,500 4 Exercise 18-12 (Algo) Target income and margin of safety LO C2 1. Assume Hudson has a target income of $169,000. 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.)

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. Exercise 18-12 (Algo) Target income and margin of safety LO C2 1. Assume Hudson has a target income of $169,000. 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.)