Read the following information carefully and decide which information is/are necessary to answer the question. Find the difference between profit and discount on table I. Shopkeeper purchased table for Rs. 400 and spend 25% of cost price on its transportation. II. He marked its price Rs. 800 and gave a discount of 12.5%. III. Profit percent of shopkeeper was 40% and discount percent was 12.5%.

To find the difference between profit and discount, we need the profit amount and discount amount. From statement I, we know cost price is Rs. 400 and transportation is 25% of CP = Rs. 100, so total CP = Rs. 500. To find profit, we need profit percent (III gives 40%) or selling price. To find discount, we need marked price (II gives Rs. 800) and discount percent (II or III gives 12.5%). Therefore, I is essential along with either II or III to calculate both profit and discount amounts.