Product details

This case poses the seemingly simple and straightforward question, ''How much does it cost Wendy''s to make a bowl of chili?'' Because most of the meat used in making chili comes from overcooked hamburgers, however, a question of cost allocation arises. Wendy''s is considering adding a salad bar to its ''limited menu'' and is wondering whether it should then drop an existing product. Such a decision leads to an evaluation of present-product profitability.