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Jiffy Print is a retailer of printers and ink cartridges. The printers carry a low profit margin and the ink cartridges a very high margin. Following is an aggregated budgeted performance plan for 2015.
	Budgeted Performance Report All Stores For the Year Ending December 31, 2015
	Sales
	Printers					$ 4,500,000
	Cartridges					4,500,000
	Total sales					$ 9,000,000
	Less: Variable expenses
	Printers					$ 4,000,000
	Cartridges					1,500,000
	Total variable expenses					$ 5,500,000
	Contribution margin					$ 3,500,000
	Traceable fixed costs					1,550,000
	Location margin					$ 1,950,000
	Common fixed costs					1,400,000
	Stores margin					$ 550,000
Although total sales met expectations for the year, management is upset that the targeted margins were not achieved. Following is the "store by store" actual performance report. Evaluate the detailed data and write a paragraph explaining the loss. If each store has a positive margin, as shown in the following report, why is management upset? (Response should be less than 75 words long)
	Actual Performance Report All Stores For the Year Ending December 31, 2015
		Store A		Store B		Store C
Sales
Printers		$ 2,000,000		$ 2,500,000		$ 1,000,000
Cartridges		500,000		2,000,000		1,000,000
Total sales		$ 2,500,000		$ 4,500,000		$ 2,000,000
Less: Variable expenses
Printers		$ 1,777,778		$ 2,222,222		$ 888,889
Cartridges		166,667		666,667		333,333
Total variable expenses		$ 1,944,444		$ 2,888,889		$ 1,222,222
Contribution margin		$ 555,556		$ 1,611,111		$ 777,778
Traceable fixed costs		450,000		600,000		500,000
Location margin		$ 105,556		$ 1,011,111		$ 277,778

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