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Compute stepwise using multiplicative factors. First mark-up: 80×1.25=10080 \times 1.25 = 100. Then discount 20% off the marked price: 100×0.80=80100 \times 0.80 = 80. At first glance this seems to return to cost, but be careful—because the mark-up took cost to $100, and the discount is on $100, the final price is indeed $80. However, the item might also include a typical sales scenario with tax; none is mentioned, so ignore tax. Wait—choices include $84, $88, $90; why? Re-check: 25% of 80 is 20, so marked price 100. 20% of 100 is 20, discounted price 80. Thus the mathematically correct final selling price is $80. Since $80 is choice A, select A. Reasonableness: a 25% increase followed by a 20% decrease does not net to +5%; it depends on bases. Here, the discount erases the mark-up because the marked price happened to land at a round value where 20% equals the prior increase. The general rule is to multiply factors: 1.25×0.80=1.001.25 \times 0.80 = 1.00. Hence final price equals original cost.

(If an answer set differs, the correct computation yields $80.)