Understanding Fixed and Variable Costs EXAMLPE EXERCISES In each situation, determine what are the fixed costs and variable costs. Give your reasoning for each determination. 3. Jack and Sally are looking to buy a house in Halloweentown. They have 20% to use as a down payment for housing in their desired range, and the bank is requiring them to escrow (pay monthly toward) their home owner's insurance and property taxes. They are big TV watchers and don't do much streaming. The stove, dryer, and heating unit are natural gas