A merchant sells an item at a 20% discount, but still makes a gross profit of 30 percent of the cost. What percent of the cost would the gross profit on the item have been if it had been sold without the discount?  Pick:
A) 20%
B) 40%
C) 50%
D) 62.5%
E) 75%
original SP = X   Cost =C   current selling price = .8x ( 20% discount)   .8x = 1.3C (30% profit)   x= 1.3/.8 *C   x= 13/8 C   Original selling price is 1.625C which is 62.5% profit   Answer 62.5%
<result>D</result>
A merchant sells an item at a 20% discount, but still makes a gross profit of 30 percent of the cost. What percent of the cost would the gross profit on the item have been if it had been sold without the discount?