In a market where Company A holds 40%, Company B 25%, Company C 15%, and Company D 20% of the share, and the total market size is $200 million, what is Company A's revenue?

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Study for the ATandT Information Test. Study with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

Multiple Choice

In a market where Company A holds 40%, Company B 25%, Company C 15%, and Company D 20% of the share, and the total market size is $200 million, what is Company A's revenue?

Explanation:
Understanding market share lets you turn a company's slice of the market into dollar revenue. Multiply the total market size by the company’s share: 200 million dollars times 0.40 equals 80 million dollars. So Company A’s revenue is $80M. The other options would correspond to different shares (25% of 200M is 50M, 15% is 30M, 20% is 40M), which aren’t Company A’s given share.

Understanding market share lets you turn a company's slice of the market into dollar revenue. Multiply the total market size by the company’s share: 200 million dollars times 0.40 equals 80 million dollars. So Company A’s revenue is $80M. The other options would correspond to different shares (25% of 200M is 50M, 15% is 30M, 20% is 40M), which aren’t Company A’s given share.

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