A merchant purchased a jacket for $180 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) $12	E) $15
Let selling price = x   So, x = 180 + 25x/100   Calculating above, x = 240   Selling price =240   20% $12iscount on Selling price = 192   So, profit = 192-180= 
<gadget id="calculator">192-180</gadget>
<output>12</output>
12 Answer= $12
<result>D</result>
A merchant purchased a jacket for $180 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?