South by Southwest Company used least squares regression analysis to obtain the following output:

Payroll Department Cost

Explained by Number of Employees

Constant $7,540

Standard error of Y estimate 819

R2 0.8924

Number of observations 20

X coefficient $2.473

Standard error of coefficient 0.0966

Required:

a. What is the total fixed cost?

b. What is the variable cost per employee?

c. Write down the linear cost function.

d. What is the coefficient of determination? Comment on the goodness of fit.