The situation is something simple and something that many people have had to deal with, a small, family run business is at risk of collapse. The owner is unable to get a loan and can't raise prices without losing too many customers, leaving him with two main options. The first is to keep going as normal and hope he is able make it through the tough times. The second is to compromise the quality of the products to save money and keep the business afloat. Despite ethical rationalism arguing for the first option, utilitarianism would say the second option is the best and I would agree.