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 produced		10,000
Price (all figures in )		34.16
Total revenue		341,600
Direct materials		56,200
Direct labor		187,600
Overhead (volume-based)		29,200
Total product cost		273,000
Nonmanufacturing expenses		51,100
Total cost		324,100
Profit margin for trousers		17,500

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 cutting		34,960
Grading		29,900
Lay planning		29,100
Sewing		33,500
Finishing		22,200
Inspection		10,000
Boxing up		5,400
Storage		10,800

Required:

Determine the profit margin for trousers using ABC.