Answer:
Gross profit will be $4
Step-by-step explanation:
We have given that merchant purchased a jacket for $60
So purchased price = $60
Let the markup price is x
Now according to question selling price = x+60
Now it is given that marked up price is 25 % of the selling price
So

X = 20
So selling price = 60+20 =80
Now there is discount of 20%
So price after discount =

So gross profit = $64 -$60 = 4