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Wendy's Chili: A Costing Conundrum
Brownlee, E. Richard II Case C-2206 / Published July 27, 2005 / 11 pages.
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Product Overview

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 drop an existing product. Such a decision leads to an evaluation of present-product profitability.


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  • Overview

    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 drop an existing product. Such a decision leads to an evaluation of present-product profitability.

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