A merchant purchased a jacket for $42 and then determined a selling price that equalled the purchase price of the jacket plus a markup that was 30 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) $6 D) $12 E) $15
Actual $6ost = $42   SP = Actual $6ost + Mark up   = Actual $6ost + 30% SP   = 42*100/70   on sale SP = 80/100(42*100/70) = 48   Gross profit = $6   Answer is $6
<result>C</result>
A merchant purchased a jacket for $42 and then determined a selling price that equalled the purchase price of the jacket plus a markup that was 30 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?