As Prohibition is about to be repealed, Lucy harangues Mildred to get ready to sell liquor in her restaurant. Unfortunately, liquor sales require a huge upfront investment, and Mildred has to forego buying the new piano for Veda, making her resent Monty all the more. Starting on December 6, 1933, Mildred sells alcohol at the restaurant, increasing business and bringing in new, preferable clientele.

On Christmas day, Veda is furious there is no grand piano—someone must have told her to expect it. Mildred and Bert visit Ray’s grave, but Veda does not offer to join them. Afterwards, Veda angrily demeans Mildred and their home, lighting a cigarette and dropping a match on the floor. Mildred slaps Veda, who slaps her back. Veda parrots Monty’s snobby remarks about the classlessness of Glendale and claims that Monty is only using Mildred for sex. In return, Mildred stuns Veda by telling her that Mildred has been paying all Monty’s expenses for some time. As Veda continues her tantrum, Mildred calmly leaves for work.

Mildred and Veda reconcile and Mildred resolves to break off her relationship with Monty at the end of the New Year’s Eve party to which he has invited her. Determined to make herself as glamorous as possible, Mildred has her hair done and buys a new dress and coat.