JL Francisco & Partners run a wholesale fruit business around Rio del Plata. In normal circumstances the company makes a gross profit of 5% of sales. A consultant’s report has recently suggested that 22% of their operating costs are due to logistics, and that improved efficiency might reduce this by 10%. Questions: 1. How much extra profit would this generate? 2. If they do not improve logistics, how much would sales have to rise to get the same increase in profit?