I think Jane's friend said the original price was $48 since 20% of 40 is 8. Then he/she added 8 to 40 to get 48.
Jane's friend is incorrect.
Jane paid 80% of the original price, which is 0.8 in decimal form. We can write an equation to help us find the original price (where p is the original price)
0.8p=40
----- ----
0.8 0.8
p=50
The original price was $50