Data Sufficiency: Profit and Loss Sufficiency

Concept Explanation

Profit/Loss DS items ask whether cost price (CP), selling price (SP), or profit percent can be found uniquely.

Standard Answer Choices

• A — Statement I alone is sufficient; Statement II alone is not.
• B — Statement II alone is sufficient; Statement I alone is not.
• C — Both together are sufficient, neither alone.
• D — Either statement alone is sufficient.
• E — Neither alone nor together is sufficient.

Profit/Loss DS Focus

Profit = SP − CP; Profit % = (Profit/CP) × 100. Always identify which price is the base.

DS Decision Flow

1. State exactly what must be determined (number, ratio, yes/no, or comparison).
2. Test Statement I alone—sufficient or insufficient?
3. Test Statement II alone—sufficient or insufficient?
4. If neither alone works, combine both statements.
5. Choose A–E based on sufficiency; never pick a value when data do not fix it uniquely.

Common Traps in Profit/Loss Problems

• Computing profit percent on SP instead of CP.
• Mixing marked price, discount, and CP in one step.
• Assuming CP when only SP and profit amount are given without relation.