Directions: Each of the questions given below consists of a statement and/or a question and two statements numbered I and II given below it. You have to decide whether the data provided in the statement(s) is/are sufficient to answer the question. Read both the statements and Give answer (a) if the data in Statement I alone are sufficient to answer the question, while the data in Statement II alone are not sufficient to answer the question; Give answer (b) if the data in Statement II alone are sufficient to answer the question, while the data in Statement I alone are not sufficient to answer the question; Give answer (c) if the data either in Statement I or in Statement II alone are sufficient to answer the question; Give answer (d) if the data even in both Statements I and II together are not sufficient to answer the question; Give answer (e) if the data in both Statements I and II together are necessary to answer the question. By selling a product with $20\%$ profit, how much profit was earned? I. The difference between cost and selling price is $₹ 40$. II. The selling price is 120 percent of the cost price.

### Concept & Profit Calculation Profit is calculated as the difference between the selling price (SP) and the cost price (CP). $$Profit = SP - CP$$ ### Step-by-Step Solution 1. **Analyze the Question:** We need to find the exact amount of profit earned given a $20\%$ profit margin. 2. **Evaluate Statement I:** "The difference between cost and selling price is $₹ 40$." This directly gives the profit amount since $Profit = SP - CP$. So, Profit = $₹ 40$. Statement I alone is sufficient. 3. **Evaluate Statement II:** "The selling price is 120 percent of the cost price." This translates to $SP = 1.2 \times CP$, which just confirms the $20\%$ profit margin stated in the question. It does not provide any absolute value to calculate the actual profit amount. Statement II alone is not sufficient. ### Exam Strategy & Shortcut Statement I directly defines profit. Statement II just restates the $20\%$ profit given in the question. Thus, only I is sufficient. ### Common Pitfall Thinking that percentage information alone can give an absolute value without a base value. ### Final Answer Therefore, the correct answer is **if the data in Statement I alone are sufficient to answer the question, while the data in Statement II alone are not sufficient to answer the question**.