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 (34%), skirts (30%), dresses (12%), and other (24%). Fleet Street has been using a volume-based rate to assign overhead to each product; the rate it uses is 2.24 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 )		26.21
Total revenue		314,520
Direct materials		51,800
Direct labor		172,900
Overhead (volume-based)		26,880
Total product cost		251,580
Nonmanufacturing expenses		46,900
Total cost		298,480
Profit margin for trousers		16,040

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		31,450
Grading		27,100
Lay planning		26,400
Sewing		30,100
Finishing		20,200
Inspection		8,900
Boxing up		4,800
Storage		9,600

Required:

Determine the profit margin for trousers using ABC.