The Parks Department is holding a garage sale to help raise funds for Jerry’s medical bills. The scene starts with April and Andy trying to decide the appropriate price for a hat that has sentimental value for Andy. Later, Tom tries selling a coat he had paid $150 dollars for. Tom marks the coat up to $200 because he put a scorpion on the back of it, but the customer doesn’t seem to think that’s an appropriate price for this venue.
Tom’s Bistro’s soft opening didn’t go well, so he thinks it’s time to quit. Even though Ron recommends sticking it out, Tom is phased by the sunk cost fallacy; he loves quitting! April comes to the rescue and convinces him to at least try a full opening.
Entertainment 7Twenty is bankrupt, but Tom doesn’t understand how his company has gotten this far. Tom took the phrase “spend money to make money” a bit too literally and spent all of the money that was invested in the company, including a limousine with a hot tub in it. Unfortunately for Tom, the revenue didn’t follow.
When the NBA goes on strike, Entertainment 7Twenty (Tom and Jean-Ralphio’s company) hires Indiana Pacer Roy Hibbert to play one-on-one basketball at the office for 75% of his salary. When worker’s aren’t able to go to work, their next best alternative is lower than their original wage. This allows interested firms to get labor a discount.
Ben has been asked to help Entertainment 7Twenty manage their finances because their costs are way higher than their revenues. His first suggestion is a downsizing of the building and keeping better financials. Unless the firm starts generating revenue, they only have enough cash for another month of operation.