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 $(32\%),$ skirts $(25\%),$ dresses $(13\%),$ and other $(30\%).$ Fleet Street has been using a volume$-$based rate to assign overhead to each product; the rate it uses is $2\mathrm{.}52$ 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 $)28\mathrm{.}48$

Total revenue $341,760$

Direct materials $56,200$

Direct labor $187,600$

Overhead $($volume$-$based$)30,240$

Total product cost $274,040$

Nonmanufacturing expenses $51,100$

Total cost $325,140$

Profit margin for trousers $16,620$

$$

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 $34,860$

Grading $30,000$

Lay planning $29,300$

Sewing $33,400$

Finishing $22,500$

Inspection $10,000$

Boxing up $5,400$

Storage $10,800$

$$

Required:

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