(continuation of 9.18) A year later, Bonzo Oil experienced a 25 percent decline in the sales of its products and no longer accepts its full shipments of the refinery outputs.

Accordingly, Bonzo seeks to renegotiate the agreement based on the joint-costing system prepared previously.

Form small groups, half representing Bonzo and half representing Crusty. Considering only your company’s interests, prepare proposals to modify the joint-costing agreement. If possible, choose two representative groups to openly resolve their differences and develop a modified agreement.