Problem 1 . Show all work. Otherwise, no credit will be given Munson Bakery prepares all its cakes between 4 A.M. and 6 A.M. So they will be fresh when customers arrive. Day-old cakes are virtually always sold, but at a 40% discount off the regular $12 price. The cost of baking a cake is $7, and demand is estimated to be normally distributed, with a mean of 30 and a standard deviation of 4 . Then what is the optimal stocking level?