From 2021-2023, many industries across the world faced a shortage of computer chips. In particular, the auto industry faced a shortage of key chips needed to manufacture cars.

Below is hypothetical information for a car manufacturer, Niyonda. Before the chip shortage, the Niyonda produced and sold 558 sedans, 373 trucks, and 447 SUVs every week. Each vehicle required one specialized computer chip. Now Niyonda only has access to 640 computer chips per week and must decide how many of each product line to produce. Each vehicle requires 1 chip.

The United Auto Workers (UAW) union has threatened a major strike if the Niyonda tries to cut labor hours. Niyonda also cannot reduce its fixed overhead. However, materials, variable overhead, and selling expenses are variable in the short term.

Below is a segment income statement for Niyonda for the last week before the chip shortage began. Use the Theory of Constraints to maximize Niyonda's operating profit. The constraining factor is the number of chips. What will Niyonda's weekly operating profit be? Assume that per-unit revenue and variable costs remain the same and that total fixed costs remain the same. Also, assume that Niyonda can sell a maximum of 558 sedans, 373 trucks, and 447 SUVs every week.

	Sedans	Trucks	SUVs
Units produced and sold	558	373	447
Revenue per unit	28,540	35,394	34,592
Direct materials per unit	4,832	8,080	6,139
Direct labor per unit	1,465	1,696	1,684
VOH per unit	3,934	4,657	4,231
FOH applied per unit	8,692	8,692	8,692
Selling expenses per unit	1,258	1,258	1,258

Indicate an operating profit as a positive number. Indicate an operating loss as a negative number.

From 2021-2023, many industries across the world faced a shortage of computer chips. In particular, the auto industry faced a shortage of key chips needed to manufacture cars.

Below is hypothetical information for a car manufacturer, Niyonda. Before the chip shortage, the Niyonda produced and sold 558 sedans, 373 trucks, and 447 SUVs every week. Each vehicle required one specialized computer chip. Now Niyonda only has access to 640 computer chips per week and must decide how many of each product line to produce. Each vehicle requires 1 chip.

The United Auto Workers (UAW) union has threatened a major strike if the Niyonda tries to cut labor hours. Niyonda also cannot reduce its fixed overhead. However, materials, variable overhead, and selling expenses are variable in the short term.

Below is a segment income statement for Niyonda for the last week before the chip shortage began. Use the Theory of Constraints to maximize Niyonda's operating profit. The constraining factor is the number of chips. What will Niyonda's weekly operating profit be? Assume that per-unit revenue and variable costs remain the same and that total fixed costs remain the same. Also, assume that Niyonda can sell a maximum of 558 sedans, 373 trucks, and 447 SUVs every week.

	Sedans	Trucks	SUVs
Units produced and sold	558	373	447
Revenue per unit	28,540	35,394	34,592
Direct materials per unit	4,832	8,080	6,139
Direct labor per unit	1,465	1,696	1,684
VOH per unit	3,934	4,657	4,231
FOH applied per unit	8,692	8,692	8,692
Selling expenses per unit	1,258	1,258	1,258

Indicate an operating profit as a positive number. Indicate an operating loss as a negative number.