Let us denote Selling Price by S
By first statement , S=60+0.25*S
But after discount of 20%,final selling Price is 64
Thus Gross profit is Final Selling Price-Purchase Price
Does anyone know how to solve this question? I'm having some trouble with it.
A Merchant purchased a jacket for $60.00 and then determined a selling price that equaled the purchase price of the jacket plus a markup that was 25% of the selling price. During a sale, the merchant discounted the selling price by 20% and sold the jacket. What was the merchant's gross profit on this sale?
I've narrowed the answer down to a choice between b and c since the other answer choices seems impossible, but I still can't seem to figure out how to solve the problem.
Any help would be appreciated!