Funguy Corporation, a small agricultural fungicide producer, discovers their Formula X product is operating at a loss. The case explores quantifying the loss and finding options to return Formula X to profitability. Candidates analyze the production process, calculate current losses, and brainstorm ways to increase profitability. Key steps include developing a framework, conducting operations and profitability analysis, and providing recommendations. The case tests conceptual understanding and operations knowledge in the niche fungicide industry. Candidates must navigate through fixed contracts, operational constraints, and explore innovative solutions like running additional batches and recycling rejected materials to improve profitability.