The chairman of the company has assured the shareholders of a minimum dividend following increase in the company's licensed capacity. The chief accountant and other senior executives analyse the market for beer, the demand potential, plus the structure and behaviour of material costs and operating expenses, to see if the chairman's assurance can be fulfilled. The case focuses on the relationship between cost, volume and projects. Concepts that can be illustrated are variable costs, fixed costs, contribution margin, breakeven analysis, and margin of safety.