Problem 21 Buddy the Elf produces three products: Steds, Bicycles, and Skates. All three products use the same direct material, Christmas Cheet. Unit data for the three products are Product Sleds Bicycles Skates 60 5 405 25 $ Selling Price Variable Costs Direct Materials Labor and Other Costs Quantity of Cheer per Unit $ $ 8 $ 65 4 12 5 95 6 6 4 The demand for the products for exceeds the direct matrials available to produce the products, Christmas Cheer costs $2 per pound and a maximum of 7.925 pounds is available each month. Buddy the Elf must produce a minimum of 175 units of each product REQUIRED 1. How many units of Sleds, Bicycles, and Skates should Buddy the Elf produce? 2. What is the maximum amount Buddy the Elf would be willing to pay for another 1.200 additional units of Cheer? 3. (O Points) According to Buddy the Elf, what is the best way to spread Christmas Cheer