Step-by-step explanation:
whenever there are % in play, determine first what are the 100%, or what are 1% (1/100 of 100%).
in our case,
100% = $70,000
112% = 1.12×100% = 1.12×70000 = $78,400
so, the difference is
78400 - 70000 = $8,400
you need to cut your expenses by $8,400 to eliminate the deficit.
FYI
but if you want to express the cut also in %, then you have to be careful.
no, it does NOT mean to cut the expenses by 12%.
because if you reduce 112% by 12%, you actually take 12% of 112 and not of 100.
now,
100% = $78,400
1% = 100%/100 = 78400/100 = $784
we know that we have to reduce the expenses by $8,400.
how many % of the total expenses is that ?
well, as many as times 1% fits into 8400 :
8400 / 784 = 10.71428571...%
so, we need to cut the expenses ($78,400) by about 10.71% to eliminate the budget deficit.
