Let the total number of bread = n
Let the cost price of 1 bread = x
Let marked price/selling price = y


Loaves of bread that was completely damaged = 16%
Loaves of bread that were slightly damaged = 24%
Loaves of bread that were in good order = 100% - (16 + 24)%
= 100 - 40 = 60%


Expected profit = 40%
Completely damaged bread could not be sold while slightly damaged, bread was sold for 80% of x = 0.8x
Marked price/selling price = cost price + profit
= x + 40% of x
x + 0.4x = 1.4x
y = 1.4x


Total selling price considering the completely damaged , slightly damaged and no damage bread
Total selling price = [(16% of n) * 0] + [(24% of n) * 0.8x] + [(60% of n) * 1.4x]
= (0.24n * 0.8x) + (0.60n * 1.4x)
= 0.192nx + 0.84nx
Total selling price = 1.032nx

Total cost price = number of bread * cost of 1 bread
Total cost price = nx
Profit = total selling price - total cost price
Profit = 1.032nx - nx
Profit = 0.032nx

% profit = profit/total cost price * 100/1
% profit = 0.032nx/nx * 100/1
% profit = 3.2

Answer = C