Ivan wants to buy a new tennis racquet which costs $200 from the factory. The sports shop marks up the price by 60%. Ivan bought the racquet when the shop had a 25% off sale. How much profit did the shop make?

The sports shop spent $200 for the racquet, so they are - $200.

They sell it for 200*1.6 = $320

Ivan buys it at the store with a 25% discount: 320*.75 = $240

So the store receives $240 revenue from the sale. So deducting the $200 they spent to get the racquet in the first place, the shop made a total of:

$240 - $200 = $40 profit