A merchant sells 15 leather jackets for $1,200 and suffers a loss equal to the selling price of 3 jackets. What is the cost price of one jacket?

The correct answer is $96.

Given Data:
Total selling price of 15 jackets = $1,200
Loss = Selling price of 3 jackets

Step 1: Find the selling price (SP) of 1 jacket.
To find the selling price of a single jacket, divide the total selling price by the number of jackets sold:

$\text{SP of 1 jacket}=\frac{\mathrm{\$1200}}{15}=\mathrm{\$80}$

Step 2: Calculate the total loss.
Since the merchant suffers a loss equal to the selling price of 3 jackets, multiply the selling price of 1 jacket by 3:

$\text{Total Loss}=3\times \mathrm{\$80}=\mathrm{\$240}$

Step 3: Calculate the total cost price (CP) of 15 jackets.
Recall the relationship between Cost Price, Selling Price, and Loss:

$\text{Cost Price}=\text{Selling Price}+\text{Loss}$

Substitute the known values to find the total cost price of 15 jackets:

$\text{Total CP of 15 jackets}=\mathrm{\$1200}+\mathrm{\$240}=\mathrm{\$1440}$

Step 4: Calculate the cost price of 1 jacket.
Divide the total cost price by the number of jackets (15):

$\text{CP of 1 jacket}=\frac{\mathrm{\$1440}}{15}=\mathrm{\$96}$

Thus, the cost price of one jacket is $96.