Hi All,
When DS question involve variables and really limited information, you have a really easy approach: TEST Values.
We're asked: Is MN divisible by 40? This is a YES/NO question. Notice how were are not told anything about M and N; they can be ANYTHING (positive, negative, 0, integers, fractions, etc.). Keep THAT in mind when you TEST Values.
Fact 1: M is divisible by 40
M = 40
N = 1
The answer to the question is YES
M = 40
N = .7
The answer to the question is NO
Fact 1 is INSUFFICIENT
Fact 2: N is divisible by 4
M = 40
N = 4
The answer to the question is YES
M = 1
N = 4
The answer to the question is NO
Fact 2 is INSUFFICIENT
Combined, we know that M is divisible by 40 and N is divisible by 4
So, we have (multiple of 40)(multiple of 4) ---> ALWAYS divisible by 40.
Combined, SUFFICIENT
Final Answer: C
GMAT assassins aren't born, they're made,
Rich