Kyle recently opened a bar & grill. The costs associated with his new business are as follows:

Question:

Kyle recently opened a bar & grill. The costs associated with his new business are as follows:
a. $300,000 to build the restaurant
b. $30,000 for a liquor license
c. $50,000 on furniture and kitchenware
d. 2 cooks who will each be paid $5,000 per month
e. 5 waiters who will each be paid $3 per hour plus tips
Which of Kyle's costs are fixed, and which are variable? Explain.