An organization produces two products, X and Y.

When a limiting factor exists, production should prioritize the product with the highest contribution per unit of scarce resource. Material is limited to 500 kg. Product X has contribution of $10 − $2 material cost = $8 per unit, or $4 per kg. Product Y has contribution of $13 − $6 material cost = $7 per unit, or about $1.17 per kg. Product X gives higher contribution per kg, so the organization should satisfy full demand for X first. Producing 100 units of X uses 200 kg, leaving 300 kg. Product Y requires 6 kg per unit, so 300 kg allows production of 50 units. Internal audit should verify that scarce-resource decisions use contribution per limiting factor, not contribution per unit alone. Therefore, Option A is correct.