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 20 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 choice from the following.
A) $ 0	B) $ 3	C) $ 4	D) $ 12	E) $ 15

Rationale: "actual cost = $ 60 sp = actual cost + mark up = actual cost + 20 % sp = 60 * 100 / 80 on sale sp = 80 / 100 ( 60 * 100 / 80 ) = 60 gross profit = $ 0 answer is a"
Answer: A