You decide to start selling used vinyl music records (LPs) online using your garage as your warehouse. You expect the costs of building the website will be $10,000. You have thousands of LPs sitting around your house and know many other folks who would be willing to sell you their LPs at a bulk wholesale price. Luckily, you also have $5,000 sitting around in a savings account and Mom and Dad are willing to loan you $10,000.

1. Identify 2 start-up costs. Explain why each is relevant.
2. Identify 3 fixed costs. Explain why each is relevant.
3. Identify 2 variable costs. Explain why each is relevant.