A donut store is open 8 hours a day and sells two types of donuts: blueberry cake donut and chocolate frosted donut. On average, the demand is 80 donuts per day for EACH type. The store has only one machine, which makes both types, and once it starts, it produces one donut every 2 minutes for either type. The production alternates between the two types, i.e., a batch of one type is followed by a batch of the other. The setup time is 20 minutes for either type.

1. If the setup time is 8 minutes for either type, and the batch size is 20 donuts per batch, what is the capacity per day for each type of donut? (You can assume that at the end of the day, any unfinished production of the last batch can be resumed immediately at the beginning of the next day. If you prefer to work under other assumptions, state your assumptions clearly and calculate the capacity accordingly.)