What is the amount of gross profit if the stock turnover ratio is 6 times; average stock is Rs. 8,000 and; selling price is 25% above cost?

To calculate the gross profit, we can use the following formula:

Gross profit = (Selling price – Cost) * Number of units sold

In this case, the number of units sold is equal to the average stock, which is Rs. 8,000. So, the gross profit is equal to:

Gross profit = (1.25 * Cost) * Rs. 8,000

= Rs. 10,000

Therefore, the amount of gross profit is Rs. 10,000.

Option A is incorrect because it is the cost of goods sold. Option B is incorrect because it is the average stock. Option D is incorrect because it is the selling price.