A project manager is developing a project budget. After estimating the cost of each activity, the manager adds a contingency reserve by increasing the estimated cost of all activities by the same percentage. However, this resulted in the total cost exceeding the allocated budget even before adding the management reserve.

What should the project manager do$?$

A$.$Request additional budget to ensure that all cost estimations are appropriately funded.

B$.$Reduce the percentage increase to reduce the total cost of the project.

C$.$Recalculate the contingency reserve based on identified risks and response strategies.

D$.$Allocate a portion of the contingency reserve to the management reserve.