Fleet Street Incorporated a manufacturer of high-fashion clothing for women, is located in South London in the UK. Its product line consists of trousers (23%), skirts (35%), dresses (10%), and other (32%). Fleet Street has been using a volume-based rate to assign overhead to each product; the rate it uses is 2.20 per unit produced. The results for the trousers line, using the volume-based approach, are as follows: Number of units produced 14,000. 26.40 Price (all figures in ) Total revenue 369,600 Direct materials 60,900 Direct labor 203,200 Overhead (volume-based) 30,800 Total product cost 294,900 Nonmanufacturing expenses 55,200 Total cost 350,100 Profit margin for trousers 19,500 Recently, Fleet Street conducted a further analysis of the trousers line of product, using ABC. In the study, eight activities were identified, and direct labor was assigned to the activities. The total conversion cost (labor and overhead) for the eight activities, after allocation to the trousers line, is as follows: Pattern cutting Grading Lay planning Sewing Finishing Inspection 37,760 32,300 31,400 36,100 23,900 10,000 5,900 11,800 Boxing up i Storage Required: 1. Determine the profit margin for trousers using ABC. Profit margin