The formula for volume, V, is depth x width x length.
The depth is x. With the squares cut out, the width is reduced to 10 - 2x and the length is reduced to 16- 2x.
The working equation is then 137.5 = x (10- 2x) (16 - 2x)
This is a general cubic so it must be solved using a graphing calculator. There are actually two values of x which solve this equation. There are x = 1,53 and x = 2.5 The latter is exact.