A poor shoemaker and his wife have only a stale donut and a cup of coffee left to share. An elf drops by, and they offer to share with him. He teaches them (in song) to dunk the donut in the coffee. Later, as they sleep, he brings several other elves back, and they work through the night making shoes in humorous ways. The shoes are a success. Soon, the shoemaker and his wife are quite prosperous. They treat the elves to a feast of donuts and coffee, and the elves treat us to another chorus of "Dunk! Dunk! Dunk!".

Japanese master spy Daka operates a covert espionage-sabotage organization located in Gotham City's now-deserted Little Tokyo, which turns American scientists into pliable zombies. The great crime-fighters Batman and Robin, with the help of their allies, are in pursuit.

Down-on-his luck entrepreneur Bill Martin and sidekick Stuff Oliver try to stay one step in front of creditors in their seedy waterfront office when they meet The Captain, an idiosyncratic peg-legged old sailor. The Captain is convinced that the treasure of pirate Sir Henry Morgan is hidden somewhere in a castle on an offshore island recently inherited by Martin. His proof is a treasure map, half of which has been stolen by a mysterious Phantom who lurks in the shadows waiting for an opportunity to steal the other half. Sensing a moneymaking opportunity, Bill tries to recruit customers willing to pay $50 apiece for a treasure hunt outing to the haunted island. Among those signing up are heiress Wendy Creighton and her bored, ineffectual boy friend, a dimwitted police sergeant, a professor whose expertise is old maps, a wanted murderer and his moll, and Bill's cousin George, who has recently offered $20,000 to buy the supposedly worthless island. They all get more than the few goosebumps they bargained for as death and the Phantom await them in the ghostly castle.