A retailer pays her supplier $240 for an item and applies a mark-up of 45% of cost. If she subsequently sells it during a "25% off" clearance sale, how much gross profit will she make?

A) $0
B) $21
C) $33
D) $108
E) $261

Gross Profit

The difference between revenue and the cost of goods sold before deducting overhead, payroll, taxation, and interest payments.

Mark-up

The sum added onto the goods' cost price to account for overhead expenses and profit, which establishes the selling price.

Clearance Sale

A sale event where products are offered at significantly reduced prices to clear out inventory.