American Airlines Group Inc. provides air transportation services using mixed costing. In November 2027, the company incurs the following costs related to its operations:

• Fixed Costs: $100 million
• Variable Costs: $50 million
• Semi-Variable Costs: $30 million

Required:

• Classify each cost as fixed, variable, or semi-variable.
• Calculate the total operating costs for American Airlines Group Inc.
• Determine the cost per passenger assuming 10 million passengers served.
• Analyze the cost behavior of mixed costs in the airline industry.
• Discuss the role of cost classification in managing operational costs.