1. Assume Hudson has a target income of $159,000. 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.)
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![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 (10,900 units at $225 each)
Variable costs (10,900 units at $180 each)
Contribution margin
Fixed costs
$ 2,452,500
1,962,000
490,500
387,000
Income
$ 103,500
Exercise 18-12 (Algo) Target income and margin of safety LO C2
1. Assume Hudson has a target income of $159,000. 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.)
1. Amount of sales
2. Margin of safety
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