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 (45%), skirts (35%), dresses (15%), and other (5%). Fleet Street Inc. has been using a volume-based rate to assign overhead to each product; the rate it uses is 2.25 per unit produced. The results for the trousers line, using the volume-based approach, are as follows:

Number of units produced		10,000
Price (all figures in )		20.525
Total revenue		205,250
Direct materials		33,750
Direct labor		112,500
Overhead (volume-based)		22,500
Total product cost		168,750
Nonmanufacturing expenses		31,500
Total cost		200,250
Profit margin for trousers		5,000

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		22,000
Grading		19,000
Lay planning		18,500
Sewing		21,000
Finishing		14,300
Inspection		6,500
Boxing up		3,500
Storage		7,000

Required:

Determine the profit margin for trousers using ABC.