At the completion of this case graduate learners should be able to demonstrate their knowledge of cost-volume-profit (CVP) analysis through the application of relevant case facts in determining a firm’s fixed and variable costs. Learners should also be able to distinguish between sunk and marginal costs and operating and capital costs. In addition, learners should be able to develop a cash flow statement. Learners should be able to apply net present value and internal rates of return in making a recommendation to accept or reject a business proposal. Learners should also be able to demonstrate an understanding of the concepts of degree of leverage and margin of safety. In addition, learners should be able to apply Porter’s Model of Competitive Strategy. This case is intended as a final graduate-level integrated case in the application of cost and managerial accounting concepts, and the application of Porter’s Five Forces Model.