### What is the optimal stocking level

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Henrique's Correa's bakery prepares all its cakes between 4am and 6am so they will be fresh when customers arrive. Day-old cakes are virtually always sold but at a 50% discount off the regular \$8 price. The cost of baking a cake is \$5 and demand is estimated to be normally distributed with a mean of 30 and a standard deviation of 6. What is the optimal stocking level?

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