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When a new product enters a market, the new sales of that product will come from two sources: Some of the sales will come from

When a new product enters a market, the new sales of that product will come from two sources: Some of the sales will come from entirely new purchases that would have never been made if the new product didn't come to market. Some of the sales will come from the new product taking away purchases from the existing products. The easy way to estimate what will happen to the market share of other competitors is use an approach called the "Fair Share Draw." The Fair Share Draw rule make the assumption that the new product's sales that come from existing competitors will come in direct proportion to the existing market share of those products. The current market situation is shown below:

Sales($) Market Share
Existing Product A $700 35%
Existing Product B $700 35%
Existing Product C $600 30%

Now a new product is introduced, and the sales revenue was $1000. If the new product's sales from three existing competitors come in 25% of the existing market share, what is the new sales revenue of Product C?

A) $450

B) $475

C) $500

D) $525

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