A newly recruited management trainee presents a breakeven chart to explain the reasons for the losses the company has been sustaining since inception. The chart provokes a lot of discussion. Several questions are raised as to the utility of breakeven analysis in a multiproduct situation. Suggestions are also made to improve operations. Students are required to evaluate these suggestions using the concepts underlying cost- volume-profit relationships. The case could be used to introduce students to the uses and limitations of breakeven analysis and the implicit assumptions underlying this technique.