Problem Solving

A merchant purchased a jacket for $60 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?

(A) $0
(B) $3
(C) $4
(D) $12
(E) $15

Hi, Here is my take..

Let x be the selling price of the jacket.
Then x = 60 + 0.25* x
x = 80
Discounted selling price = 0.8*x = 64
Gain = 64-60= 4

IMO C

C it is!

https://www.beatthegmat.com/brain-freeze-t24419.html

ace_gre wrote:Hi, Here is my take..

Let x be the selling price of the jacket.
Then x = 60 + 0.25* x
x = 80
Discounted selling price = 0.8*x = 64
Gain = 64-60= 4

IMO C