Consider the following batch-flow process consisting of two process steps performed by two machines. Step 1 takes 25 minutes to set up before beginning the activity time of 2 minutes per unit. Step 2 takes 35 minutes to set up before an activity time of 1.5 minutes per unit.

Work is processed in batches at each step. Before a batch is processed at a step, the machine at that step must be set up. (During a setup, the machine is unable to process any product.) Assume that there is a dedicated setup operator for each machine (i.e., there is always someone available to perform a setup at each machine).

1. What is the capacity of Step 1, measured in units per hour, if the batch size is 40 units? You dont need to round your answer. (10 points)
2. What is the ideal batch size, such that neither station is idle while the other is producing? In other words, there is no single bottleneck. (9 points)