A shop purchased a pair of shoes for $150 and was selling it at a price that equaled the purchase price of the shoes plus a markup that was 25 percent of the selling price. After some time a shop owner decided to decrease the selling price by 20 percent. What was the shop's gross profit on this sale? Choose the correct choice from the following options.
A) $0
B) $2
C) $10
D) $6
E) $8
Sale Price(SP) = 150 + Markup(MP)   --&gt; Mp = SP-150   and given MP=SP/4 ( 25% is 1/4th)   so SP/4= SP-150   3SP/4= 150   SP=200   Now a discount of 20% is given so NEW SP is .8 *200= 
<gadget id="calculator">.8 *200</gadget>
<output>160</output>
160   Profit=160-150= 
<gadget id="calculator">160-150</gadget>
<output>10</output>
$10   Answer is $10
<result>C</result>
A shop purchased a pair of shoes for $150 and was selling it at a price that equaled the purchase price of the shoes plus a markup that was 25 percent of the selling price. After some time a shop owner decided to decrease the selling price by 20 percent. What was the shop's gross profit on this sale?