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Percentage problem

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Percentage problem

by Nycgrl » Sat Aug 02, 2008 2:41 pm
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?
(A) $0
(B) $3
(C) $4
(D) $12
(E) $15
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by newera » Sat Aug 02, 2008 4:36 pm
C) $4. OA pls.
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by ddm » Sat Aug 02, 2008 4:58 pm
can someone please explain the solution to this problem...
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by sibbineni » Sat Aug 02, 2008 5:06 pm
let p be the purchase price of jacket

sp--> selling price

p=60 given

sp=p+.25sp

.75sp=p

sp=60/.75==>80

the merchent then discounted by 20 % of the selling price (ie ) he discounted 16 dollars

so, selling price==>64

the net profit =sp-p
==>64-60=4
C is the answer
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