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Lance Allot,vice-President of Arthur Industries,a Computer Manufacturer in England,has Been

Question 47

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Lance Allot,vice-president of Arthur Industries,a computer manufacturer in England,has been trying to figure out whether one of his branch managers,Ms.Gwen,has been achieving the company-wide return on sales target of 20 percent.Mr.Allot has just been given data from his new target costing system regarding Ms.Gwen's operations.Ms.Gwen's estimated target sales volume is 30,000 computers with a target-selling price of $1,000.The data also show that Ms.Gwen's unit target cost is $750 per unit.
Required:
a.Help Mr.Allot determine whether Ms.Gwen's return on sales target has been met.
b.Has Ms.Gwen done a good or a poor job? Explain.

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Overall Target Profit is the unknown and...

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