A merchant purchased a jacket for $56 and then determined a selling price that equalled the purchase price of the jacket plus a markup that was 30 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?	Choices:  A) $ 0  B) $ 8  C) $ 4  D) $ 12  E) $ 15

Rationale: "actual cost = $ 56 sp = actual cost + mark up = actual cost + 30 % sp = 56 * 100 / 70 on sale sp = 80 / 100 ( 56 * 100 / 70 ) = 64 gross profit = $ 8 answer is b"
Answer: B