Reference no: EM13300728

Wendy's was founded on the concept of old-fashioned hamburgers. Each hamburger is a square patty, which is served directly from the grill when a customer places an order. During peak periods, cooks must estimate demand and have a sufficient supply of hamburgers cooking when customers arrive. Hamburgers that become too well done cannot be served because they don't meet Wendy's specifications for "hot and juicy." Thus Wendy's invented Wendy's chili made with overdone hamburgers.

Wendy's chili is made daily by the assistant manager or an experienced crew member. It takes four to six hours to cook the chili and, during this time, it must be stirred once each hour to prevent burning. It takes 10 to 20 minutes to prepare a batch of chili using the following ingredients:

48 hamburger patties (equals 12 pounds of meat) $1.25/pound      

1 can crushed tomatoes                    1.70/can    

5 cans tomato sauce                      0.51/can 

2 cans red beans                         1.32/can        

1 Wendy's seasoning packet                  0.45/each

This recipe yields 57 bowls of chili. Ten percent of the time it is necessary to cook hamburgers specifically for the chili. The remainder of the time, overdone hamburgers, which have been refrigerated until needed, are used. It takes 10 minutes to cook 48 hamburger patties. Then the patties must be chopped into smaller pieces, which takes about five minutes. Mixing the ingredients takes approximately five minutes.

Other chili costs include the following:

Serving bowls                          $0.035 each

Lids for carry out                         0.025 each

Spoons                               0.010 each

Labor costs are:

Assistant manager                       $4.08 per hour

Management trainee                      3.98 per hour

Crew member                           2.90 per hour

Required: Determine the cost of a bowl of chili.