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.
