# Ecommerce merchandising vs. buying internships

## What if the leftover stock is not worthless?

A fictional retailer has 92 units already purchased. It expects to sell 60 at $50 or all 92 at $40. Unsold full-price units can instead be sold for salvage at the same period end. Ignore other costs; the original purchase cost is common to both options.

### Same expected sales, different leftover value

| Option | Sales cash | Units left for salvage |
| --- | --- | --- |
| Keep $50 price | $3,000 | 32 |
| Mark down to $40 | $3,680 | 0 |

## Your turn

What salvage value per leftover unit makes the options equal? Which wins at $25 per unit?

## Your answer

[Write your approach here.]

## For your own application

Include the expected value of unsold stock in the comparison.

Return to the guide for the worked answer and source notes:
https://internshipdeadlines.com/guides/ecommerce-merchandising-vs-buying-internships