A merchant purchased a jacket for $30 and then determined a selling price that equaled the purchase price of the jacket plus a markup that was 25 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?  Choices:
A) $2	B) $3	C) $4	D) $12	E) $15
Let selling price = x   So, x = 30 + 25x/100   Calculating above, x = 40   Selling price = 40   20% Discount on Selling price = 32   So, profit = 32-30= 
<gadget id="calculator">32-30</gadget>
<output>2</output>
2 $2nswer= $2
<result>A</result>
A merchant purchased a jacket for $30 and then determined a selling price that equaled the purchase price of the jacket plus a markup that was 25 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?