The Chuggers Brewery Company is the second largest brewer of strawberry flavored beer in the country. Strawberry flavored beer is a specialty brew that appeals to a select group of individuals who do not view any other liquid refreshment as competitive. The management Chuggers has decided that it would like to purchase the SyberSlosh Beer Company, another producer of strawberry flavored beer. According to ATF statistics the following are the market shares for strawberry flavored beer producers:

A House & A Bush Beer Co ........... 40%

Chuggers Brewery Co...................... 25%

Babs Brews...................................... 20%

SyberSlosh Beer Co......................... 10%

Fruity Beer Inc.................................. 5%

Based on the ATF statistics what is the current HHI for the strawberry flavored beer market (prior to merger)?

A)35%

B)500

C)2750

D)3250