Incorrect.  The award is just the loss on 1000 bags.  Here is the damage calculation:

First, the contract-performed position:  Loss on 1000 bags. 

Second, the result-of-the-breach-proper-mitigation position:  Loss on an additional 1000 bags.

Assume there is nothing the coffee dealer can do to reduce damages.

Third, the award:  Award the loss on the additional 1000 bags--provided that:  (1 the loss is one arising in the usual course of things; or, (2) a reasonable person would, at the time of contracting, have thought the loss would be a probable result of the breach.  

Since the court assumes that (2) is true, it awards the loss on the additional 1000 bags. 

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