Fleet Street Inc., a manufacturer of high-fashion clothing for women, is located in South London in the UK. Its product line consists of trousers (34%), skirts (30%), dresses (12%), and other (24%). Fleet Street has been using a volume-based rate to assign overhead to each product; the rate it uses is 2.24 per unit produced. The results for the trousers line, using the volume-based approach, are as follows:

Number of units produced 12,000 Price (all figures in ) 26.21 Total revenue 314.520 Direct materials 51,800 Direct labor 172,900 Overhead (volumebased) 25.330 Total product cost 251.580 Nonmanufacturing expenses 46.900 Total cost 298.430 Profit margin for trousers 15.040 l Pattern cutting E31 , 450 Grading 27, 100 Lay planning 26, 400 Sewing 30 , 100 Finishing 20, 200 Inspection 8, 900 Boxing up 4,800 Storage 9, 600 Required: Determine the profit margin for trousers using ABC. Profit margin