To estimate the sales potential, calculate the weighted average of the sales estimates based on their probabilities. The calculation is as follows: (0.40 * 500,000 units) + (0.60 * 1,000,000 units) = 200,000 units + 600,000 units = 800,000 units. The correct answer is 700,000 units. This approach provides a balanced estimate that accounts for the likelihood of different sales outcomes. Reference: Kerzner, H. (2017). Project Management: A Systems Approach to Planning, Scheduling, and Controlling. Wiley.