If you want to change the format iTunes is converting to, go to iTunes menu bar, Edit > Advanced tab > Importing tab & there you can change the format.

BTW if you're using mp3, I would recommend using the custom setting & then choosing VBR & choose the bit rate you'd prefer. VBR (variable bit rate) is much better than CBR (constant bit rate). The bit rate varies according to how much the specific moment of music requires it. If it's basic simple notes it can encode at lower bit rate, during more complex bits of music it can encode at a higher bit rate. Whereas CBR encodes all at the one bit rate & wastes some of the bit rate on parts of the music that don't need it. VBR is also easier for players to handle playing. Sorry I got carried away there. I hope you didn't mind that piece of advice. Take it or leave it. lol

After making the setting for mp3 & setting the bit rate, then press ok. Now select the song on the CD playlist, & go to iTunes menu bar, Advanced & select Convert to ... (mp3) BTW you can select the entire CD if you hold down the SHIFT key at the same time. That's if you want the entire CD at the one bit rate range.