Final answer:
The break-even revenue for the manufacturer can be calculated by finding the quantity of units at which the total cost equals the total revenue. The break-even revenue is $8,750.
Step-by-step explanation:
The break-even revenue can be calculated by determining the quantity of units at which the total revenue equals the total cost. In this case, the monthly fixed cost is $70,000 and the production cost is $17 per unit. The product sells for $25 per unit.
To find the break-even revenue, we need to determine the quantity of units at which the total cost is equal to the total revenue. Let's assume the quantity of units is 'x'. The total cost is the sum of the fixed cost and the variable cost.
Total cost = Fixed cost + (Production cost per unit * Quantity of units)
Total revenue = Selling price per unit * Quantity of units
At the break-even point, Total cost = Total revenue. So, we have the equation: $70,000 + ($17 * x) = $25 * x.
Solving the equation, we get: $70,000 + $17x = $25x. Rearranging it, we get: $8x = $70,000. Dividing both sides by $8, we get: x = $8,750.
Therefore, the break-even revenue is $8,750.