A vendor sells specialty gift baskets at a price of \(\$50.00\) per basket, which represents a markup of \(25\%\) above the cost to produce each basket. The vendor prepared and delivered an order of \(120\) baskets to a customer. However, that customer returned \(15\) baskets and requested a partial refund. How much should the vendor refund per basket so that the vender makes a \(20\%\) profit on the initial cost of the \(120\) baskets?

A. \(\$10\)
B. \(\$16\)
C. \(\$20\)
D. \(\$34\)
E. \(\$40\)

Answer: B

Source: Manhattan GMAT