[tex]\bf \begin{array}{lccclll}
&\stackrel{gallons}{amount}&\stackrel{butterfat~\%}{quantity}&\stackrel{butterfat~gallons}{quantity}\\
&------&------&------\\
\textit{7\% butterfat milk}&x&0.07&0.07x\\
\textit{1\% butterfat milk}&y&0.01&0.01y\\
--------&------&------&------\\
mixture&312&0.06&18.72
\end{array}[/tex]
[tex]\bf \begin{cases}
x+y=312\implies \boxed{y}=312-x\\
0.07x+0.01y=18.72\\
----------\\
0.07x+0.01\left( \boxed{312-x} \right)=18.72
\end{cases}
\\\\\\
0.07x-0.01x+3.12=18.72\implies 0.06x=15.6
\\\\\\
x=\cfrac{15.6}{0.06}\implies x=260[/tex]
how many gallons of the 1% milk? well, y = 312 - x.