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The dummy is an exact replica of SpongeBob, that can be customized to suit SpongeBob's needs.
Role in episode
It first appears in the Krusty Krab, in one of the first scenes in the episode. SpongeBob uses it after Pearl destroys most of the restaurant. It then appears in the last scene when it is seen standing outside of Mr. Krabs' house, returning Pearl home to Mr. Krabs. The dummy seen in the later scene is dressed up to be long, tan, and handsome like Octavius Rex.