Determining the Profit Maximization Level: An Empirical Investigation in Navana Furniture, Bangladesh
Hasan, M.M., Chowdhury, N.M., and Alam, M.M. 2010. Determining the Profit Maximizing Point: An Empirical Investigation for Navana Furniture, Bangladesh, Green University Review, Vol. 1(2). pp. 81-87. (ISSN 2218-5283; Publisher- Green University of Bangladesh)
5 Pages Posted: 28 Mar 2017
Date Written: 2010
Business always tries to find ways to improve its competitiveness and gain maximum profit. Organizations easily determine the maximum production and profit level through the simplex method in linear programming. This paper examined the profit maximization point for dining chair and sofa manufacturing by Navana Furniture Company, Bangladesh through simplex method in linear programming and graphical method. The findings showed that Navana Furniture Company can improve its profit by 4.03% for dining chair and sofa manufacturing cases if it follows the new profit maximizing point that is determined by this study. The findings of the paper will be helpful for the company management, shareholders as well as other companies to improve their performance.
Keywords: Profit maximization, linear programming, simplex method, point testing, Navana Furniture
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