A-5 Hudson Company reports the following contribution margin income statement.HUDSON COMPANYContribution Margin Income StatementFor Year Ended December 31Sales (11,400 units at $225 each)Variable costs (11,400 units at $180 each)Contribution marginFixed costsIncome$ 2,565,0002,052,000513, 000360,000$ 153,0001. Assume Hudson has a target income of $150,000. What amount of sales (in dollars) is needed to produce2. If Hudson achieves its target income, what is its margin of safety (in percent)?Note: Round your answer to 1 decimal place.1. Dollar sales for target income2. Margin of safety

Cost volume profit analysis is the technique used by management for decision making. The methods…

Hudson Company reports the following contribution margin income statement. HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales (11,400 units at $225 each) Variable costs (11,400 units at $180 each) Contribution margin Fixed costs Income 1. Assume Hudson has a target income of $150,000. What amount of sales (in dollars) is needed to produce. 2. If Hudson achieves its target income, what is its margin of safety (in percent)? Note: Round your answer to 1 decimal place. 1. Dollar sales for target income 2. Margin of safety $ 2,565,000 2,052,000 513,000 360,000 $ 153,000 %