Then Peggy, Sergei, and some of the company visit Junior's school. Sergei has come to break the bad news that he will not be doing the jazz ballet, but Peggy persuades him by threatening to pull out the million dollars she has put into the company. After Sergei's announcement that the next production will be Slaughter on Tenth Avenue, the class stages the title number "On Your Toes", in which the students' jazz and the company's classical routines are deftly combined.
