Whitney, president of EnergyAppliances, Inc., an appliance manufacturer in Seattle, Washington, has been trying to decide whether one of her product-line managers, Ralph Mann, has been achieving the companywide return-on-sales target of 55%. Whitney has just received data from the new target costing system regarding Ralph's operation. Ralph's sales volume was 800,000 appliances with an average selling price of $1,100 and expenses totaling $264 million.

Requirement

1. Determine whether Ralph's return-on-sales ratio has met the companywide target, and how much Ralph's return-on-sales ratio?

2. Has Ralph done a good or a poor job? Explain.