Your question is Discounting and Profitability. Take a moment with it on the right.
Talk me through your thinking if you like. When you're confident, submit your answer and I'll grade it like a real screen (7/10 or better passes).
What is the impact of discounting on profitability?
Asked in the L2 Practical / Hands-on stage. Listed as a topic covered in the round.
Explain how you would measure whether a discount improves profitability rather than only increasing sales. Address the required baseline, incremental volume, margin effects, customer behavior, and relevant guardrails. No additional business scenario or data is provided, so state the assumptions and data needed before calculating the impact.