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.