Sarah is considering the start-up of a residential cleaning business. She can buy a used car for $8000. She has a friend who will work for her. Based on her research, Sarah believes she can charge $90 to clean an average-sized family home. Sarah expects most of her clients will be local, and estimates that the round-trip driving distance associated with each job will average 10 kilometres. She has estimated the following expenses:

Cleaning supplies	$10/home
Cell phone	$80/month
Advertising	$75/month
Friend's wages	$30/home
Sarah's wages	$1500/month
Business licence	$150/year
Car insurance and licence	$1500/year
Fuel	$75 every 500 km
Oil changes	$50 every 5000 km
Tires	$500 every 100,000 km
Business liability insurance	$600/year
Depreciation	$150 per 1000 km

a. Classify the costs into two categories-fixed costs and variable costs.

b. Determine values for FC, the (total) monthly fixed costs, and VC, the variable costs per home.