Three Chums Fish Company Buys Fresh Salmon Daily from the Fishermen

Three Chums Fish Company buys fresh salmon daily from the fishermen that ply the deep waters of Puget Sound. Salmon are purchased for $2.50 per pound and sold to the public at $8.50 per pound. The salmon are kept fresh by displaying them on ice but at the end of the day, any unsold fish have a noticeable odor and are sold to a nearby chowder stand for $1 per pound. The past year's demand for salmon on Saturdays is shown in the table. Based on this information, what should their target service level and stocking point be? What is the significance of the target stocking level?
$$\begin{array} { | c | c | } \hline \text { Daily Demand (pounds) } & \text { \# Days at This Level } \\\hline 300 & 3 \\\hline 320 & 4 \\\hline 340 & 6 \\\hline 360 & 9 \\\hline 380 & 9 \\\hline 400 & 8 \\\hline 420 & 6 \\\hline 440 & 5 \\\hline 460 & 2 \\\hline\end{array}$$