To find the unit rate that describes the spending of each guest, we need to divide the total amount of money James has by the number of guests he is inviting.
The unit rate is:
$240 ÷ 20 guests = $12 per guest
This means that James can spend up to $12 on each guest if he wants to stay within his budget of $240.
To explain how this solution was found, we used division to find the amount of money James can spend on each guest. We divided the total amount of money James has ($240) by the number of guests he is inviting (20) to get the unit rate of spending per guest ($12). This unit rate tells us how much James can allocate to each guest while staying within his budget.