A local farm market buys fresh fruits and vegetables from local farmers. It buys peaches from one farmer at a cost of $0.90 per pound and sells it for $2.00 per pound. The demand for peaches during the season is normally distributed with a mean of 40 pounds per day and a daily standard deviation of 5 pounds. At the end of each business day, any unsold peaches are purchased by local restaurants for $0.60 per pound (in U.S. dollars):

1. Determine the service level.

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