Mako Company has the following income statements for the three years ended December $31,1998,1999$, and 2000 .

1. Prepare common-size income statements.
2. The manager of the company believes that she should get a raise because net income increased each year. Do you agree that she should get a raise?

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Sales revenue Cost of goods sold Gross margin Selling expenses Administrative expenses Income before income taxes Income taxes Net income Dec. 31, 2000 Dec. 31, 1999 Dec. 31, 1998 $150,000 95,000 $120,000 70,000 $95,000 50,000 $ 55,000 $ 50,000 $45,000 18,333 11,000 $ 25,667 5,133 $ 23,333 4,667 $21,000 4,200 $ 20,534 $ 18,666 $16,800 16,667 15,000 10,000 9,000