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 (24%), skirts (37%), dresses (14%), and other (25%). Fleet Street has been using a volume-based rate to assign overhead to each product; the rate it uses is 2.92 per unit produced. The results for the trousers line, using the volume-based approach, are as follows:

Number of units produced10,000Price (all figures in )34.16Total revenue341,600Direct materials56,200Direct labor187,600Overhead (volume-based)29,200Total product cost273,000Nonmanufacturing expenses51,100Total cost324,100Profit margin for trousers17,500

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 cutting34,960Grading29,900Lay planning29,100Sewing33,500Finishing22,200Inspection10,000Boxing up5,400Storage10,800

Required:

Determine the profit margin for trousers using ABC.