Cast Iron Grills, Inc., manufactures premium gas barbecue grills. The company reports inventory and cost of goods sold based on calculations from a LIFO periodic inventory system. Cast Iron’s December 31, 2021, fiscal year-end inventory consisted of the following (listed in chronological order of acquisition):Units Unit Cost5,000 $7004,000 8006,000 900The replacement cost of the grills throughout 2017 was $1,000. Cast Iron sold 27,000 grills during 2017. The company’s selling price is set at 200% of the current replacement cost. Required:1. Compute the gross profit (sales minus cost of goods sold) and the gross profit ratio for 2017 assuming that Cast Iron purchased 28,000 units during the year.2. Repeat requirement 1 assuming that Cast Iron purchased only 15,000 units.3. Why does the number of units purchased affect your answers to the above requirements?4. Repeat requirements 1 and 2 assuming that Cast Iron uses the FIFO inventory cost method rather than the LIFO method.5. Why does the number of units purchased have no effect on your answers to requirements 1 and 2 when the FIFO method is used?