Carol is a creative, artistic person. A few years ago, she had enough of spending $5 for birthday cards. She could do it herself-and she did! She created beautiful, fun cards for many occasions, and sent them to all of her friends and family. In the process, she got a lot of feedback from the recipients suggesting she could sell them. Hmm. Now there's an idea. Carol doesn't want to charge as much as the big greeting card companies, and yet she wants to make a little profit on these cards in order to make it worth her time. She is contemplating a selling price of $2.90 and estimates the cost of paper and other miscellaneous items to be about $0.80 per card. Her fixed costs are quite small, since she runs the small business out of her home. She estimates her fixed costs at just $588 per year. Before actually promoting this business, she wants to feel confident that she will make money. Naturally, she turns to her CVP skills to help answer the following questions. If she sells 440 cards next year, how much operating income will she make? Operating income $ What will her margin of safety be in both units and sales dollars at this level of activity? Margin of safety units units Margin of safety dollars Carol is really hoping that she can earn at least $2,100 in operating income to buy an ATV. How many cards will she need to sell for this to happen? (Round intermediate calculations and final answer to 0 decimal places, e.g. 5,125 .) Number of cards units What if she wants $2,100 in operating income after-tax, and her tax rate is 30% ? (Round intermediate calculations and final answer to 0 decimal places, e.g. 5,125.) Number of cards units Attempts: 1 of 1 used (d) Given the above calculations, she is starting to wonder if this venture is worth her time. Making such a small contribution margin per card doesn't add up to much profit unless she can sell a really large volume. But a large volume of sales would require a significant amount of time on her part. What if she raises her price to $3.40 per card? How much operating income can she then make from selling 440 cards? Operating income $