Define your variables:
m = milk
w = water
c = chips
The total cost for 2 milks, 6 waters, and 6 chips was 25.60, so the equation would be
2m + 6w + 6c = 25.60
If a bottle of water is twice as much as a bag of chips, translate that into the equation w = 2c.
Solve this equation for c:
c = .5w
If a gallon of milk costs 1.80 more than a bottle of water, translate that into m = w + 1.80.
Substitute .5w in for c and w + 1.80 in for m in the first equation:
2(w+1.80) + 6w + 6(.5w) = 25.60
Distribute and simplify:
2w + 3.60 + 6w + 3w = 25.60; 11w + 3.60 = 25.60
Solve for w:
w = 2
Substitute w = 2 into the original equations:
c = .5(2) = 1.00
m = 2 + 1.80 = 3.80.
Milk was $3.80, water was $2.00, and chips were $1.00.