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 (33%), skirts (26%), dresses (10%), and other (31%). Fleet Street has been using a volume-based rate to assign overhead to each product; the rate it uses is 2.19 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 )		25.19
Total revenue		327,470
Direct materials		53,900
Direct labor		179,900
Overhead (volume-based)		28,470
Total product cost		262,270
Nonmanufacturing expenses		49,000
Total cost		311,270
Profit margin for trousers		16,200

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		36,640
Grading		31,200
Lay planning		30,300
Sewing		34,800
Finishing		23,000
Inspection		10,300
Boxing up		5,800
Storage		11,600

Determine the profit margin for trousers using ABC.