A jewelry store purchased a pair of earrings for $240 and was selling it at a price that equaled the purchase price of the earrings plus a markup that was 25 percent of the selling price. After some time a jewelry store owner decided to decrease the selling price by 20 percent. What was the jewelry store's gross profit on this sale?
Choose the correct choice from the following options:
A) $14
B) $2
C) $10
D) $16
E) $18
Sale Price(SP) = 240 + Markup(MP)   --&gt; Mp = SP-240   and given MP=SP/4 ( 25% is 1/4th)   so SP/4= SP-240   3SP/4= 240   SP=320   Now a discount of 20% is given so NEW SP is .8 *320= 
<gadget id="calculator">.8 *320</gadget>
<output>256</output>
256   Profit=256-240= 
<gadget id="calculator">256-240</gadget>
<output>16</output>
16   Answer is $16
<result>D</result>
A jewelry store purchased a pair of earrings for $240 and was selling it at a price that equaled the purchase price of the earrings plus a markup that was 25 percent of the selling price. After some time a jewelry store owner decided to decrease the selling price by 20 percent. What was the jewelry store's gross profit on this sale?