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 (35%), skirts (40%), dresses (15%), and other (10%). Fleet Street has been using a volume-based rate to assign overhead to each product; the rate it uses is 2.45 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 )		27.44
Total revenue		329,280
Direct materials		54,100
Direct labor		180,700
Overhead (volume-based)		29,400
Total product cost		264,200
Nonmanufacturing expenses		49,300
Total cost		313,500
Profit margin for trousers		15,780

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		37,310
Grading		31,900
Lay planning		31,000
Sewing		35,600
Finishing		23,700
Inspection		10,600
Boxing up		5,700
Storage		11,400

Required:

Determine the profit margin for trousers using ABC.

Profit margin