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 (33%), skirts (26%), dresses (10%), and other (31%). Fleet Street has been using a volume-based rate to assign overhead to each product; the rate it uses is 2.19 per unit produced. The results for the trousers line, using the volume-based approach, are as follows:

Number of units produced	13,000
Price (all figures in )	25.19
Total revenue	327,470
Direct materials	53,900
Direct labor	179,900
Overhead (volume-based)	28,470
Total product cost	262,270
Nonmanufacturing expenses	49,000
Total cost	311,270
Profit margin for trousers	16,200

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	36,640
Grading	31,200
Lay planning	30,300
Sewing	34,800
Finishing	23,000
Inspection	10,300
Boxing up	5,800
Storage	11,600

Required:

1. Determine the profit margin for trousers using ABC.