A jewelry store purchased a pair of earrings for $240 and was selling it at a price that equaled the purchase price of the earrings plus a markup that was 25 percent of the selling price. After some time a jewelry store owner decided to decrease the selling price by 20 percent. What was the jewelry store's gross profit on this sale?  Options:
A) $ 14
B) $ 2
C) $ 10
D) $ 16
E) $ 18

Rationale: sale price ( sp ) = 240 + markup ( mp ) - - > mp = sp - 240 and given mp = sp / 4 ( 25 % is 1 / 4 th ) so sp / 4 = sp - 240 3 sp / 4 = 240 sp = 320 now a discount of 20 % is given so new sp is . 8 * 320 = 256 profit = 256 - 240 = 16 answer is d
Answer: D