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? Choose the correct answer:
A) $ 0
B) $ 3
C) $ 4
D) $ 12
E) $ 15

Rationale: "markup = x x = 0.25 ( 60 + x ) = > 3 x / 4 = 15 = > x = 20 so sp = 80 but actual sp = 0.8 * 80 = 64 so profit = $ 4 answer - c"
Answer: C