How can they be absorbing something if they are still selling for over invoice? Anything over cost would mean that they aren't absorbing any of the price, since it isn't costing them anything... or am I missing something?
I doubt you can apply the incentive to the price at this point. The CA has a bottom line to work with and it probably doesn't really matter to them how they hit it. The incentives allow them to ask for a higher price knowing they can throw in the incentive if you start to walk. It would be stupid of a salesperson to negotiate to their limit and then let you throw in the incentive. I can't imagine many make this mistake... if they do, they'll backpedal and say that the price includes the incentive.