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 (25%), skirts (33%), dresses (14%), and other (28%). Fleet Street Inc. has been using a volume-based rate to assign overhead to each product; the rate it uses is 2.61 per unit produced. The results for the trousers line, using the volume-based approach, are as follows:

Number of units produced		13,000
Price (all figures in )		29.23
Total revenue		379,990
Direct materials		62,500
Direct labor		208,600
Overhead (volume-based)		33,930
Total product cost		305,030
Nonmanufacturing expenses		57,100
Total cost		362,130
Profit margin for trousers		17,860

Recently, it has 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		39,470
Grading		33,700
Lay planning		32,800
Sewing		37,800
Finishing		25,000
Inspection		11,300
Boxing up		6,100
Storage		12,200

Required:

Determine the profit margin for trousers using ABC.