A merchant purchased a jacket for $48 and then determined a selling price that equalled the purchase price of the jacket plus a markup that was 40 percent of the selling price. During a sale, the merchant discounted the selling price by 20 percent and sold the jacket. What was the merchant’s gross profit on this sale?
Options:  A) $0  B) $3  C) $4  D) $12  E) $16
Actual Cost = $48   SP = Actual Cost + Mark up   = Actual Cost + 40% SP   = 48*100/60= 
<gadget id="calculator">48*100/60</gadget>
<output>80</output>
80/100(48*100/60)= 64   Gross profit = $16   Answer is $16
<result>E</result>
A merchant purchased a jacket for $48 and then determined a selling price that equalled the purchase price of the jacket plus a markup that was 40 percent of the selling price. During a sale, the merchant discounted the selling price by 20 percent and sold the jacket. What was the merchant’s gross profit on this sale?