If x is the variable for the miles and y is the variable for the total cost then the equation would be y=2.65x(because it is "per mile") +2.50(flat fee)
X is the number of miles. The per mile charge is $2.65 per mile, so for x miles, the per mile charge is 2.65x. The fixed charge is the initial charge of $2.50. The total charge is the fixed charge plus the per mile charge.