Question

Paul can choose to be paid $50 for a job or he can be paid 12.50 per hour. Underwhat circumstances should he choose the hourly wage? Explain

Answer 1

Option 1: $50
Option 2: $12.50 per hour.

50 ÷ 12.50 = 4

Paul can choose the hourly wage if he works more than 4 hours.
For example, he works 5 hours.

12.50 x 5 hours = 62.50

$62.50 is higher than the fixed rate of $50. Thus, hourly wage is the better option.