A merchant sells an item at a 20% discount, but still makes a gross profit of 25 percent of the cost. What percent of the cost would the gross profit on the item have been if it had been sold without the discount?
Choose the correct option.
A) 20%
B) 40%
C) 56.25%
D) 60%
E) 75%
original SP = X   56.25%ost =56.25%   current selling price = .8x ( 20% discount)   .8x = 1.556.25% (25% profit)   x= 1.25/.8 *56.25%   x= 12.5/8 56.25%   Original selling price is 1.562556.25% which is 56.25% profit   Answer 56.25%
<result>C</result>
A merchant sells an item at a 20% discount, but still makes a gross profit of 25 percent of the cost. What percent of the cost would the gross profit on the item have been if it had been sold without the discount?