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 $(24\%),$ skirts $(37\%),$ dresses $(14\%),$ and other $(25\%).$ Fleet Street has been using a volume$-$based rate to assign overhead to each product; the rate it uses is $2\mathrm{.}92$ per unit produced. The results for the trousers line, using the volume$-$based approach, are as follows:

Number of units produced $10,000$

Price $($all figures in $)34\mathrm{.}16$

Total revenue $341,600$

Direct materials $56,200$

Direct labor $187,600$

Overhead $($volume$-$based$)29,200$

Total product cost $273,000$

Nonmanufacturing expenses $51,100$

Total cost $324,100$

Profit margin for trousers $17,500$

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 $34,960$

Grading $29,900$

Lay planning $29,100$

Sewing $33,500$

Finishing $22,200$

Inspection $10,000$

Boxing up $5,400$

Storage $10,800$

Required:

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