I'm stuck on how to set up an equation for this problem to solve for the answer.
You need to set up a proportion.
In proportion symbols
$1.35 : 1000 gal :: ? : 32,900 gal
So solve for the unknown by
multiplying the outside and multiply the inside and setting equal to each other
$1.35 x 32,000 gal = ? x 1000 gal
Of in algebraic symbols
$1.35 per 1000 Gal is ? per 32,900 gal
$1.35/1000 gal = x/32,000 gal
solve for X.Hopefully you can see you get the same equation either way.