A merchant sells an item at a 10% discount, but still makes a gross profit of 20 percent of the cost. What percent of the cost would the gross profit on the item have been if it had been sold without the discount?
Pick one
A) 30 %  B) 40 %  C) 50 %  D) 60 %  E) 75 %

Rationale: original sp = x cost = c current selling price = . 9 x ( 10 % discount ) . 9 x = 1.2 c ( 20 % profit ) x = 1.2 / . 9 * c x = 4 / 3 c original selling price is 1.3 c which is 30 % profit answer a
Answer: A