A merchant purchased a jacket for $60 and then determined a selling price that equalled 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?
Choose the most appropriate option:
A) $0 B) $3 C) $4 D) $12 E) $15
Markup = x   x = 0.25(60 + x)   =&gt; 3x/4 = 15   =&gt; x = 20   So SP = 80   But Actual SP = 0.8 * 80= 
<gadget id="calculator">0.8 * 80</gadget>
<output>64</output>
64   So profit= $4   Answer - $4
<result>C</result>
A merchant purchased a jacket for $60 and then determined a selling price that equalled 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?