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 (27%), skirts (25%), dresses (12%), and other (36%). Fleet Street Inc. has been using a volume-based rate to assign overhead to each product; the rate it uses is 3.00 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 )		35.70
Total revenue		357,000
Direct materials		58,600
Direct labor		195,700
Overhead (volume-based)		30,000
Total product cost		284,300
Nonmanufacturing expenses		53,000
Total cost		337,300
Profit margin for trousers		19,700

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		37,430
Grading		32,100
Lay planning		31,200
Sewing		35,700
Finishing		23,900
Inspection		10,700
Boxing up		5,700
Storage		11,400

Required:

Determine the profit margin for trousers using ABC.