I have no idea how the dealer came up with that price. It was simply quoted to me and after a few minutes to think about it, I said yes. There was no price negotiation on this item at all.
Actually, there was no price negotiation on the vehicle, except that I laughed at the $3K "add on" over sticker price, which was removed as soon as they realized I was serious about the purchase, and the trade in price of my 2001 Mitsubishi Eclipse. I asked for $10.9K, they said $9K. We finally settled on $10.5K I only agreed, because I knew it needed a set of tires...