Often a target profit is used to determine whether a customer account is profitable. Which of the following statements is/are correct about customer profitability analysis?

Statement 1: If account revenues exceed "account expenses + target profit", account is profitable and generates a return in excess of minimum required rate of return.

Statement 2: If account revenues exceed expenses but are less than "account expenses + target profit", account is not profitable and does not meet the minimum required rate of return.

Statement 3: If account revenues exceed expenses but are less than "account expenses + target profit", account is profitable but does not meet the minimum required rate of return.

	a.	Statement 1 only
	b.	Statement 2 only
	c.	Both statements 1 and 2.
	d.	Both statements 1 and 3