A bakery must decide how many graduation cakes to prepare for the upcoming weekend. The demand for the cakes can be approximated by a normal distribution with a mean of 8 cakes per day and a standard deviation of 1 cake. The cost to prepare each graduation cake is $35 and can be sold for $63 (in U.S. dollars). Any unsold cakes during the weekend are sold at half the price the following Monday. Typically, half of these cakes get sold at the reduced price, and the other half get donated to a homeless shelter:

1. Determine the service level.

2. What is the optimal stocking level for the service level determined in (a)?