Target costing: return on sales Stacy Yoo, president of Caremore, Inc., an appliance manufacturer in Seattle, Washington, has been trying to decide whether one of her product-line managers, Bill Mann, has been achieving the companywide return-on-sales target of 45%. Stacy has just received data from the new target costing system regarding Bill's operation. Bill's sales volume was 300,000 appliances with an average selling price of $500 and
expenses totaling $90 million.
Required:
Determine whether Bill's return-on-sales ratio has met the companywide target. Has Bill done a good or a poor job? Explain.