A store buys an item for $40 and sells it at a 60% markup. Later, the item is put on sale for 25% off the selling price. What is the sale…

A $60\%$ markup on a $40 cost gives a selling price of $40(1.60)=64$ dollars. A $25\%$ discount leaves $75\%$ of that price: $64(0.75)=48$ dollars, choice B. Choice D ($64) is the price before the sale. Choice A ($32) is $80\%$ of the cost, which discounts the cost rather than the selling price. Choice C ($52) does not follow from either percent change. The discount is taken from the selling price, not the original cost, and successive percent changes are multiplied rather than added or subtracted.