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 (22%), skirts (29%), dresses (15%), and other (34%). Fleet Street has been using a volume-based rate to assign overhead to each product; the rate it uses is 2.70 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 )	31.86
Total revenue	382,320
Direct materials	62,800
Direct labor	209,800
Overhead (volume-based)	32,400
Total product cost	305,000
Nonmanufacturing expenses	56,900
Total cost	361,900
Profit margin for trousers	20,420

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	34,730
Grading	29,800
Lay planning	28,900
Sewing	33,100
Finishing	22,100
Inspection	10,000
Boxing up	5,300
Storage	10,600

Required:

1. Determine the profit margin for trousers using ABC.