Kevin is selling homemade bread with a 30% markup (i.e., the profit of each unit sold is 30% of the unit production cost). At the end of the day, his friend, Jose, is willing to buy all the unsold units if Kevin offers a discount of 80% off the selling price. What is the optimal service level (i.e., critical ratio) for selling bread? (Note: Here's an example of the discounted price. Consider a product priced at $100. The price with a discount of 20% off the selling price is $80.) 28.85% 47.63% 63.14% 71.15% A restaurant offers pancakes for sale at $9 per meal. The cost of production per meal is $4. Any unsold pancakes at the end of the day are thrown away with a salvage value of $1 per meal. The daily demand for pancakes follows a normal distribution with an average of 200 meals and a standard deviation of 60 . Based on the newsvendor model, what is the optimal number of meals the restaurant should prepare daily? 187 219 243 260