A company's production facility, consisting of two identical machines, currently caters only to product A. The annual demand for the product is 4000 units. Management has now decided to introduce another product, B, which uses the same facilities as that of product A. Product B has an annual demand of 2000 units. In view of the uncertainties involved in producing two products, management desires to have an overall 10 percent capacity cushion. Given the following additional information about processing requirements, how many more machines are required? (Assume 8 hours/shift, 2 shifts/day, 250 days/year, and that no overtime is allowed).

Product	Processing Time per Unit (in hours)	Setup time per Batch (in hours)	Batch (Lot) Size (units)
A	2.0	8	100
B	2.8	16	200

Show your calculations for each question at the bottom of the question.  Without the solution, an incorrect answer will receive 0 points and correct answers may not receive full points.  The shown work will help me see where the error is and provide appropriate partial credit and feedback. 

Using the information above, what is the total number of hours required of the machines to meet the annual demand for product A? 

Using the information above, what is the total number of hours required of the milling machine to meet the annual demand for product B? 

What is the company's current annual capacity per machine? 

How many additional machines are required?