This study, involving 65 undergraduates at the Georgia Institute of Technology (Atlanta); explores a scheme for representing problem-solving knowledge and predicting transfer as a function of problem-solving subgoals acquired from examples. A subgoal is an unknown entity (numerical or conceptual) that needs to be found in order to achieve a higher level goal of a problem. Subjects studied three algebraic word problems dealing with work. Twenty-three subjects studied examples in which the representations for each worker's rate and time were provided, as well as the actual solution; 21 subjects studied examples in which only an explicit representation for each worker's rate and the solution were provided; and 21 subjects studied examples in which only an explicit representation for each worker's time and the solution were given. Results indicate that learners who had read examples illustrating certain subgoals did a better job of achieving those subgoals in novel test problems requiring new representations compared to subjects who had not been exposed to those subgoals in their examples. It is contended that if researchers can determine subgoals for solving problems in a domain, particularly from a novice's viewpoint, they can develop examples that are more likely to teach those subgoals. Four sample word problems are included. (TJH)