Peoples Inc's most recent income statement is presented below:

Sales $$450,000$

Cost of Goods sold $$200,000$

Gross Margin $$250,000$

Other operating expenses $$196,000$

Operating Income $$54,000$

It has been determined $$70,000$ of cost of goods sold and $$106,000$ of operating expenses are fixed.

Compute the contribution margin ratio. Show your work and computations.