A merchant purchased a jacket for $60 and then determined a selling price that equalled the purchase price of the jacket plus a markup that was 20 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?  Choose the correct choice: A) $0 B) $3 C) $4 D) $12 E) $15
$0ctual Cost = $60   SP = $0ctual Cost + Mark up   = $0ctual Cost + 20% SP   = 60*100/80   on sale SP = 80/100(60*100/80) = 60   Gross profit = $0   $0nswer is $0
<result>A</result>
A merchant purchased a jacket for $60 and then determined a selling price that equalled the purchase price of the jacket plus a markup that was 20 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?