Next, you have a meeting with a project manager to review the sensitivity of projects and risk analysis tools.

You are reviewing the following results from a projects sensitivity analysis. The project manager wants your opinion on which value drivers should be the firms focus for this project. Which value driver should be the focus?

Value Drivers	Baseline NPV	Sensitivity Analysis NPV	% Change
Unit Sales (-10%)	$273,000	$250,000	-8.42%
Price per unit (-10%)	$273,000	-$25,000	-109.16%
Variable cost (+10%)	$273,000	$175,000	-35.90%
Cash fixed cost (+10%)	$273,000	$263,000	-3.66%

Which is the best response regarding where the firm should focus their attention first?

A. Management should focus on fixed costs

B. Management should focus on price per unit

C. Management should focus on variable costs

D. Management should focus solely on NPV and IRR of the baseline analysis