Reference no: EM131155185
Mickey the Dip, an expert pickpocket and forger, liked to work the LA International Airport on busy days. His technique was to pick the pockets of prosperous-looking victims just before they boarded planes to the East Coast. This gave Mickey five hours to use stolen credit cards before the owners could report their losses.
One morning Mickey snatched a fat wallet from a traveler and left the airport to examine his loot. To his surprise he found no credit cards but instead $500 in traveler's checks. After 20 minutes of practice, Mickey could sign a perfect imitation of the victim's signature.
He then proceeded to a large department store where all suits were being sold for 75% off the regular price. Mickey purchased a suite for $225 and paid for it with $300 in stolen traveler's checks. After the clerk who served him went to lunch, he bought another suit for $150 and paid for it with the remaining $200 of stolen traveler's checks. Later, Mickey switched the labels on the two suits and, using the receipt from the $225 suit, returned the $150 suit at a centralized return desk for a refund. The refund clerk took the suit and gave Mickey eleven $20 bills, which he stuffed into his pocket and disappeared.
When the department store deposited the traveler's checks, they were returned as forgeries. Assuming the store normally sold suits at twice their wholesale price and usually gave 10% of sales to charity, what was the cash value of the loss suffered by the store as a result of Mickey's caper? Do not consider taxes in your computations.
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