3. Cost Classification: The Lee’s have provided you with the following costs and relevant information that are assumed for year 20XY. Classify the costs as variable costs or fixed costs. Explain the importance of distinguishing between variable and fixed costs. If business is expected to be steady from month to month, provide a monthly budget based on these figures. a. Advertising Fees $4,000 FIXED b, Labor= $400/month . One part-time employee will be hired to take care of packaging and shipping. This employee will be paid $10 per hour. He or she is estimated to work 40 hours total per month. FIXED Packaging Supplies $3,000 VARIABLE d. Office Supplies=$800 FIXED e. Phone and Internet Service $115/month FIXED f. Product Supplies $9,000 VARIABLE