So, when he was offered the job did he think to ask how much was the pay? He could have turned it down and looked for something better.
He was probably told if produces (x) number of pieces at a certain quality (z) he would be paid (x-z=$02.50) or produce (x) number of pieces at another quality (y) and he would be paid (x+y=$5.00).
He produces more of the 1st formula, hence his pay reflects that quality of work, which is fine for the owner because he can sell the inferior products at outlets.
Jose, produces outlets quality materials. Doesn’t make them bad but, they are not the quality of standard and his pay reflects his workmanship..