swerve wrote:A certain ice cream factory makes two flavors of ice cream: chocolate and caramel. Each flavor comes in two varieties: one with over 20 percent milk and one with under 20 percent milk. Did more than 2/5 of all the ice cream made in July contain over 20 percent milk?

(1) Exactly 80 percent of the caramel ice cream made in July contained over 10 percent milk, and of this amount, 1/4 contained over 20 percent milk.
(2) Exactly 1,000 gallons of the chocolate ice cream made in July contained over 20 percent milk.

The OA is E.

Source: Veritas Prep

Statement 1 is not sufficient since we do not have any information about Chocolate icecream.

Statement 2 is also not sufficient since we do not have any information about Chocolate icecream with less than 20 percent milk and Caramel icecream.

(1) and (2) together

Even after combining the two statements, we cannot reach the conclusion since we do not have any information about Chocolate icecream with less than 20 percent milk.

The correct answer: E

Hope this helps!

-Jay
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This question is faulty as written. We're told:

swerve wrote:Each flavor comes in two varieties: one with over 20 percent milk and one with under 20 percent milk.

Then statement 1 says:

(1) Exactly 80 percent of the caramel ice cream made in July contained over 10 percent milk, and of this amount, 1/4 contained over 20 percent milk.

If the only 2 varieties are over or under 20%, then it should be the case that if 80% is over 10% milk, the other 20% is under 10% milk, and this is the entire category of under-20%-milk. Instead, this implies that there are varying degrees of under-20%-milk: some under 10% and some between 10-20%.

This doesn't change our answer in this case, but it's unnecessarily confusing / complicating, in a non-GMAT-like way. Any GMAT overlapping sets question that implies that categories are mutually exclusive and comprehensive will not make unnecessary distinctions within the categories.