Karam 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 Karam's costs are fixed, and which are variable? Explain.