A merchant purchased a jacket for $90 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) $0  B) $3  C) $6  D) $12  E) $15
Let selling price = x   So, x = 90 + 25x/100   $6alculating above, x = 120   Selling price = 120   20% Discount on Selling price = 96   So, profit = 96-90= 
<gadget id="calculator">96-90</gadget>
<output>6</output>
6 Answer= $6
<result>C</result>
A merchant purchased a jacket for $90 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?