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 company wide return on sales target of 45%. Stacy has just recived 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.
a. Determine whether Bill's return on sales ratio has met the company wide target. Has Bill done a good or poor job? Explain.