Each of the questions given below consists of a question and two statements numbered I and II given below it. You have to decide whether the data provident in the statements is sufficient to answer the question. Read both statements and-
By selling a product at 20% profit, how much profit was earned ?
I. The difference between cost price and selling price is Rs 40
II. The selling price is 120 percent of the cost price.

Options

A. If the data in statement I along is sufficient to answer the question, while the data in statement II alone is not sufficient to answer the question.
B. If the data in statement II alone is sufficient to answer the question, while the data in statement I alone is not sufficient to answer the question
C. If the data in statement I alone or statement II alone is sufficient to answer the question.
D. If the data in both the statements I and II is not sufficient to answer the question.

Answer

To solve the question, "By selling a product at 20% profit, how much profit was earned?", we will analyze the two statements provided.

### Step-by-Step Solution:

1. **Understanding Profit Percentage**:
- When a product is sold at a 20% profit, it means the selling price (SP) is 120% of the cost price (CP).
- Mathematically, if CP = x, then SP = x + 0.2x = 1.2x.

2. **Analyzing Statement I**:
- Statement I states: "The difference between cost price and selling price is Rs 40."
- From the previous understanding, we know:
\[ SP - CP = 40 \]
- Substituting SP = 1.2x into the equation:
\[ 1.2x - x = 40 \]
- Simplifying this gives:
\[ 0.2x = 40 \]
- Therefore, we can find CP:
\[ x = \frac{40}{0.2} = 200 \]
- Now, we can calculate SP:
\[ SP = 1.2 \times 200 = 240 \]
- The profit earned is:
\[ Profit = SP - CP = 240 - 200 = 40 \]

3. **Analyzing Statement II**:
- Statement II states: "The selling price is 120 percent of the cost price."
- This is essentially the same information we derived from the profit percentage. It does not provide any numerical values to calculate the profit.
- Therefore, Statement II alone does not provide sufficient information to determine the profit.

### Conclusion:
- From Statement I, we were able to calculate the profit earned, which is Rs 40.
- Statement II does not provide any additional numerical information to help calculate the profit.

Thus, the answer is that **Statement I alone is sufficient to answer the question, while Statement II alone is not sufficient**.