Bobby's Bagels

to reevaluate its service level strategy.

The bagels sell at $$5,$ while they cost $$2$ to make.

For each lost customer; there is no additional goodwill loss. Excess inventory donated to charity earns no salvage value.

What is the optimal service level for Bobby's Bagels stores?

$($Hint: this is given by the Critical Ratio$)$

$60\%$

$70\%$

$80\%$

$90\%$