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 2.52 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 )	28.48
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.