Delta Air Lines, Inc. provides airline services using mixed costing. In August 2028, the company incurs the following costs related to its operations:

• Fixed Costs: $150 million
• Variable Costs: $75 million
• Semi-Variable Costs: $50 million

Required:

• Classify each cost as fixed, variable, or semi-variable.
• Calculate the total operating costs for Delta Air Lines, Inc.
• Determine the cost per passenger served assuming 50 million passengers flown.
• Analyze the cost behavior of mixed costs in the airline industry.
• Discuss strategies to manage operational costs in the airline sector.