The situation combines urgent time-to-market pressure with a cost and yield problem that threatens contracted high-margin goals. The project manager should focus on a response that contains the issue quickly while minimizing financial damage. Evaluating the most cost-effective containment action (C) aligns with balancing delivery speed, cost, and business outcomes: identify immediate actions that stabilize yield enough to meet commitments (e.g., process controls, temporary workarounds, limited design tweaks, supplier adjustments) while longer-term corrective work continues in parallel. Option A asks operations to “absorb the cost,” which may undermine profitability and is not a disciplined decision without evaluating alternatives. Option B is speculative and may violate contracts or market positioning; pricing changes are a commercial strategy, not the first containment step. Option D is too general—“appropriate corrective action” could be lengthy and may delay launch; the key is cost-effective containment to preserve margins and meet contractual goals while maintaining speed. This approach supports organizational objectives by protecting profitability, meeting contractual obligations, and maintaining competitive advantage through timely launch.

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