ECONOMIC-MATHEMATICAL MODELING OF DECISION MAKING ON PROFIT AND PROFITABILITY MAXIMIZATION WITHIN CVP-ANALYSIS WITH DEMAND RESTRICTION

Solving the problem of financial results optimization with demand restriction for enterprises and companies activity is relevant for modern economics. The decision of this problem is based on the operation analysis through determining of existing interaction of production’s volume and structure and cost and its influence on financial results of activity of national market subjects. In this case attention is paid for impossibility of boundless increasing of goods and services sales for optimum of business activity, and functional connection of sales and price as description of market condition with setting of interrelationship of demand and business activity parameters is given. Main steps for mathematic decision of stated optimization problem with CVP-analysis and calculus for firms and companies activity are described in detail. As a result, analytical values of business activity indicators for economic subjects in conditions for search of maximization of profit and profitability are defined, graphical analysis of functions which define profit and profitability, for the purpose of their compliance to mathematical interpretation and economic content, is executed, and optimality of obtained mathematical decision is proved. Resolution for practical implementation of achieved results for stated optimization problem in activity of different firms and organizations from different areas and activities is given.