This project report explains the BEP analysis of Drum Brae Accessories Limited and measures the profitability level of the business. It suggests changes in the sales target and fixed cost allocation method. The report includes calculations of BEP, contribution margin, and overall profitability position of the business. It also evaluates the revised BEP and suggests products that must be retained. The report recommends changes in the marketing manager's target and discusses the suitability of the operational manager. The conclusion suggests that changes in the production process, operational changes, and sales target of the company would improve the overall profitability level of the business.