1. The ethical issue is that the product quality is being changed for Dixie's gain, which may cause a company revenue loss. She also faces a conflict of interest with her bonus and the production cost. 2. The critical performance at risk is that switching to cheaper may cause a loss of business with customers. 3. I would discuss the changes with all involved, such as management, customers, and staff. Internal feedback can provide other perspectives on how the changes may affect the company