To find Sarah's sale price after applying the 25% coupon to the item that is regularly marked at $60, we first need to calculate the amount of the discount.
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Calculate the discount amount: \[ \text{Discount} = \text{Regular Price} \times \text{Discount Percentage} = 60 \times 0.25 = 15 \]
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Subtract the discount amount from the regular price to find the sale price: \[ \text{Sale Price} = \text{Regular Price} - \text{Discount} = 60 - 15 = 45 \]
Therefore, Sarah's sale price is $45.
The correct answer is C.