A merchant purchased a jacket for $150 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) $4  D) $10  E) $15
Let selling price = x   So, x = 150 + 25x/100   Calculating above, x = 200   Selling price =200   20% $10iscount on Selling price = 160   So, profit = 160-150= 
<gadget id="calculator">160-150</gadget>
<output>10</output>
10 Answer= $10
<result>D</result>
A merchant purchased a jacket for $150 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?