Fleet Street Incorporated a manufacturer of high$-$fashion clothing for women, is located in South London in the UK$.$ Its product line consists of trousers $(23\%),$ skirts $(35\%),$ dresses $(10\%),$ and other $(32\%).$ Fleet Street has been using a volume$-$based rate to assign overhead to each product; the rate it uses is $2\mathrm{.}20$ per unit produced. The results for the trousers line, using the volume$-$based approach, are as follows:

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Number of units produced $14,000$ Price $($all figures in $)26\mathrm{.}40$ Total revenue $369,600$ Direct materials $60,900$ Direct labor $203,200$ Overhead $($volume$-$based$)30,800$ Total product cost $294,900$ Nonmanufacturing expenses $55,200$ Total cost $350,100$ Profit margin for trousers $19,500$

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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:

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Pattern cutting $37,760$ Grading $32,300$ Lay planning $31,400$ Sewing $36,100$ Finishing $23,900$ Inspection $10,800$ Boxing up $5,900$ Storage $11,800$

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Required:

$1.$ Determine the profit margin for trousers using ABC.