Target costing: return on sales Stacy Yoo, president of Caremore, lncv an appli¬ ance manufacturer in Seattle, Washington, has been trying to decide whether one of her product line managers, Bill Mann, has been achieving the company-wide re¬ turn-on-sales target of 45%. Stacy has just received data from the new target cost¬ ing 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 company-wide target. Has Bill done a good or a poor job? Explain.

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