This is incorrect reasoning because what the constant is on the right side of the equation has nothing to do with the number you are dividing by. In other words, you are dividing by 4 because that isolates the x-variable, and if it was 5x you would divide by 5. The number that you are dividing by only is determined by what number isolates x.
Just multiply all of them because Volume = Length x Width x Height. So it's 8.5 x 4.5 x 3.75. That equals 143.4375. Cubic inches is just there after you multiply, so you don't have to convert anything. So it's 143.4375 cubic inches.