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What amount of sales is needed to produce this target income

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Question - Hudson Company reports the following contribution margin income statement.

HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31

Sales (10,000 units at $300 each) $3,000,000

Variable costs (10,000 units at $240 each) 2,400,000

Contribution margin 600,000

Fixed costs 420,000

Income $180,000

1. Assume Hudson has a target income of $166,000. 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)?

Reference no: EM133114647

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