Ruth finds ways to drive continuing sales. With Bernie Loomis, she visits stores to track outfit sales and secures licensing agreements for Barbie-themed merchandise. When Hoover Vacuum salesmen pitch a Barbie-sized vacuum, Ruth dismisses them, declaring “Barbie doesn’t do rough housework” (167). Jack shows her “Miss Seventeen,” doll from competitor Louis Marx, which they consider low quality.

Ruth reads a fan letter from a girl saying her Barbie wants a boyfriend. Despite boy dolls being taboo, Ruth sees potential, discussing it with Elliot and Jack. They agree to go ahead, naming the doll Ken after the Handlers’ son. When they tell their children, Barbara is mortified, fearing people will think she’s dating her brother, but Ken seems indifferent.

The Ken doll is fast-tracked. Ruth wins an argument that Ken must be taller than Barbie. They then discuss his anatomy. When Ruth insists Ken needs genitalia, Jack sketches an extremely well-endowed version, making Ruth laugh. She tells him to tone it down significantly so Charlotte and Stevie can design clothes for him.

In 1961, Henry Pursell, Mattel’s general counsel, informs Ruth, Elliot, and Jack that Louis Marx and Company is suing Mattel for copyright infringement. Louis Marx, who now licenses Bild Lilli, claims Mattel copied the hip joint construction and that Barbie isn’t an original creation. Ruth decides to countersue, arguing Louis Marx copied Barbie with Miss Seventeen. They agree to keep the lawsuit out of the press to avoid linking Barbie to Bild Lili, who was originally a highly sexualized, adult doll. Ruth convinces herself Barbie is an original creation, reasoning that everything is inspired by something. As a precaution, Mattel tweaks Barbie’s appearance and hardware.

With Charlotte Johnson in Japan working on Ken’s wardrobe, Stevie has taken a lead role and spends more time with Jack. Working late together, Stevie sketches a strapless dress but dismisses it as impractical. Jack transforms the design, suggesting black sequins and dramatic details. Together they create a torch singer look and their creative collaboration generates energy between them. Jack leans in to kiss Stevie, but she pushes him back. He apologizes, leaving her feeling regretful.

In the shower, Ruth discovers a lump in her right breast and remembers her sister, Sarah, dying of cancer at 55. Almost a week later in the office, Ruth stares at a pink memo slip from Dr. Rekers saying to call right away. She hasn’t told Elliot about the lump or the needle biopsy she had earlier that week. As Ruth prepares to call, she reflects on her lifelong preoccupation with breasts, from her own girlhood to Barbie’s design. She calls Dr. Rekers at home, anxious. He tells her the biopsy came back benign. Relieved, she promises to quit smoking.

Barbara appears, furious that Ruth has forgotten their shopping date. She accuses Ruth of always putting work first. In the next office, Stevie and Jack overhear the confrontation. Stevie reflects that Barbara doesn’t appreciate what a trailblazer Ruth is. While listening, Stevie finds herself studying Jack and wondering what it would be like to kiss him. Barbara shouts that she wishes Ruth had never seen Barbie.

Stevie and Jack work late on Ken’s “Terry Togs” outfit. Jack clears blueprints off the couch, revealing plans to turn his home into “a castle.” Jack and Stevie kiss and then have sex in his office. The next morning, Stevie declares it a one-time fling but, two days later, it happens again. Jack asks for a real date. Stevie sets two conditions: She must be his only woman, and he must wear condoms. Jack agrees to exclusivity and reveals he’s had a vasectomy, assuring her he’s disease-free and has an understanding with his wife Barbara.

Their affair intensifies over two weeks. On her first visit to “the Castle,” Jack shows her the 16,000-square-foot mansion, revealing many features are Hollywood props to save money. That night, they jokingly call each other soulmates. At the office, employees pose Barbie and Ken dolls in sexual positions to tease them. When Stevie arrives at Jack’s office, he locks the door and they have sex.

The Ken doll is a massive hit at the Toy Fair.

Stevie worries Jack is becoming interested in a new secretary and fears their affair is nearing its end.

Ruth comes home to find Elliot talking to Ken behind a closed door. She enters despite his request for privacy and sees Ken has been crying. Elliot explains they made a mistake naming the doll after Ken: Kids at school bully Ken, calling him a “fairy” and saying he’s dating his sister. By fall 1961, 17-year-old Ken gets a girlfriend, Suzie, to deflect the bullies. Ken knows he doesn’t really want a girlfriend as he is attracted to boys. Feeling fearful of his sexual identity and what it may mean for him, he hides his true desires.

On a Saturday date, Stevie waits for Jack. She encounters former classmate Marta Krass, who works for designers Jax and Bob Mackie. Both express bewilderment that Stevie designs doll clothes. Humiliated when Jack is 30 minutes late, Stevie leaves. At home, feeling like a failure, she resolves to create a portfolio to get a job at a real fashion house. She struggles with creative block, finding everything derivative. Frustrated, she reflects that she has more creative control at Mattel than her classmates have at fashion houses. This shift in perspective inspires her and she easily creates a sophisticated black-and-white outfit for Barbie, feeling genuinely happy. She recognizes Barbie is her muse.

The following week, Stevie arrives at the Castle and sees Jack’s wife. Barbara, and their daughters, Ann and Diana, for the first time. This makes her feel like a trespasser. All the electricity she felt for Jack is gone and, that night, she breaks up with him. He takes it very hard, getting drunk and begging her to stay. Back home, Stevie cries but knows she did the right thing.

In a Barbie meeting, Jack sits awkwardly next to Stevie for the first time since their breakup. Ruth proposes a new idea, Barbie’s Dream House, arguing an independent woman should have her own home. Bernie Loomis argues it’s unrealistic because women don’t qualify for mortgages without a male signatory. Ruth angrily pushes back, declaring Barbie won’t be limited by society’s rules, and orders them to start work on the Dream House.

Jack sees his psychiatrist, Dr. Klemes, requesting refills of his diet pills. He lies about work being fine, though he’s obsessing about Stevie and feeling creatively blocked on the Dream House. Recently, he found his secretary, Ginger, sobbing because her younger sister was getting married and she had no date. To make her stop crying, he offers to take her to the wedding and gives her some diet pills.

On a Sunday, Stevie confronts Jack at the office, demanding they work professionally together. He claims she broke his heart and she retorts only his ego is broken. They laugh, hug, and clear the air to become friends. Weeks later, they work late happily on the Dream House. Stevie questions why there’s no kitchen. Jack replies that Barbie, like Stevie, doesn’t cook.

In 1962, Barbara visits her parents’ grand, new home and announces she is pregnant. Ruth is overjoyed at becoming a grandmother and bonds with Barbara by sharing stories of her own difficult pregnancy. Barbara asks if she’ll be a good mother and Ruth reassures her, recalling how Barbara was “a natural” with baby Ken. For the first time in months, Barbara seems relaxed with her mother.

In 1963, Charlotte Johnson introduces three new Barbie fashion designers: Dee Pryor, Ellen Watson, and Carol Spencer. Charlotte bluntly tells them only the best designs will be produced, creating some wariness. Despite the competition, the four women form a sisterhood, working and spending time together. They support each other through work successes and failures. Stevie, feeling threatened, asserts her seniority by giving them passive-aggressive advice.

Ginger is out for two weeks for an unspecified medical procedure. Jack, who paid for her procedure—a nose job—is lost without her and realizes how much he depends on her. He asks Stevie to review a report but is too ashamed to admit he needs help reading it. Two weeks later, Ginger returns with a bandaged nose and bruised eyes. After healing, her nose is noticeably different. She has also lost 23 pounds using diet pills Jack gave her. Stevie feels heartbroken for Ginger, who is desperate for Jack’s love. When Ginger gets bangs, lightens her hair, and wears a high ponytail, everyone realizes she’s trying to look like Barbie.

Jack enlists Ginger’s help throwing a housewarming at the Castle. The party is a success, and Jack discovers he loves entertaining. He begins hosting two or three large parties a week, charging $20 cover and offering marijuana after dark. A group of UCLA surfer boys who crashed a party now live at the Castle, working as staff in exchange for room and board.

Jack’s wife, Barbara, and their daughters never attend, staying in their separate wing. Ginger acts as hostess and is territorial with other women. Jack’s drinking escalates, and he enjoys the chaos as guests damage furniture. Late at night, a woman falls into the pool. Others, including Jack, strip down and jump in, reigniting the party.

Ruth, now a grandmother to Cheryl, worries about Barbara, who is depressed and overwhelmed by motherhood. Ruth offers help but is never available. Ken marries Suzie right after high school to escape his unhappiness about the Ken doll and his own sexuality.

Fan mail pours in asking when Barbie will marry and have a baby. Ruth instructs staff to respond that Barbie isn’t ready to settle down and focuses on giving Barbie more careers. Bernie Loomis argues that marriage is traditional and Ruth responds that turning Barbie into a housewife would limit future revenue streams. Steven Lewis notes they still need to address widespread criticism that Barbie is “selfish” for not being a wife and mother. One evening, Ruth finds Stevie reading fan mail. Stevie expresses fear that marriage for a woman means giving up one’s identity. Ruth tells Stevie about Sarah, who owned a drugstore and taught Ruth independence. As she talks, Ruth realizes the perfect solution to the criticism: Barbie can have a younger sister to care for. The baby is called “Skipper.”

In November 1963, Ruth, Elliot, and Henry Pursell are in New York to take Mattel public. When they meet with underwriters at the Harrington, a men-only club, Ruth is prevented from entering. Elliot insists the meeting cannot happen without her and she is allowed in although she has to agree to sneak through the kitchen to the service elevator. Ruth feels angry.

In the meeting, the bankers say her seat is for the head of finance, she replies she is Mattel’s head of finance. After they finish speaking, Ruth peppers them with rapid-fire questions, leaving no doubt who’s in charge. She rides down in the main elevator with the men. In the lobby, club members are gathered around a television. A man informs Ruth that President Kennedy is dead.

In early 1964, Mattel’s initial public offering succeeds and the lawsuit with Louis Marx and Mattel’s countersuit are both dismissed with no damages. Ruth discovers another benign lump in her breast and tries unsuccessfully to quit smoking through hypnosis. She notes Mattel’s stock is nearing $40 a share and that the new Midge doll—Barbie’s best friend—is performing well. To address fan mail about Midge being a third wheel, they have created a boyfriend for her: the Allan doll, spelled with an “a” to pacify Barbara, who objected to her husband, Allen’s, name being used.

Jack shows Stevie a prototype of Hasbro’s GI Joe, impressed by its articulation and saying they need to make Barbie more like this. He has sources at Hasbro but Stevie warns him not to give away trade secrets during pillow talk. At a gallery opening later, she sees a couple in love, making her wish for real love.

Ruth and Elliot have dinner with their financial advisor, Bob Mitchell. He praises their success but warns stockholders will expect sustained growth and recommends Seymour Rosenberg, a mergers and acquisitions specialist.

Rosenberg bluntly warns Ruth and Elliot that the women’s liberation movement is targeting Barbie. Ruth finds this hard to believe, as Barbie is more popular than ever. Jack has recently developed Twist ‘n Turn Barbie and a Barbie with bendable legs. Rosenberg promises to help take Mattel to the next level. At home, Ruth and Elliot debate hiring him. Ruth worries that, without aggressive growth, Mattel will fizzle out. She argues this is their chance to make Mattel one of the greatest companies in history, and they hire Rosenberg as executive vice president and give him a board seat. Elliot becomes chairman, and Ruth is named president.