How do you split the mixed costs?

Mixed costs can be split into fixed and variable components using methods such as the high-low method or regression analysis. The high-low method involves identifying the highest and lowest activity levels and their corresponding costs to estimate the variable cost per unit. Once the variable cost is determined, it can be subtracted from total costs to find the fixed cost component. Regression analysis uses statistical techniques to provide a more precise separation of fixed and variable costs based on historical data.