1964 AHSME Problem 14

A farmer bought 749 sheep. He sold 700 of them for the price paid for the 749 sheep. The remaining 49 sheep were sold at the same price per head as the other 700. Based on the cost, the percent gain on the entire transaction is:

\textbf{(A)}\ 6.5 \qquad \textbf{(B)}\ 6.75 \qquad \textbf{(C)}\ 7 \qquad \textbf{(D)}\ 7.5 \qquad \textbf{(E)}\ 8

Full credit goes to MAA for authoring these problems. These problems were taken on the AOPS website.