I think I know the answer, but I wanted some input.
An Axis unit is out in the open. No cover whatsoever. Only a single figure is with the range of my units' guns.
My interpretation is that 1) the Axis unit has no cover 2) the damage can only be allocated to the figure that's within range.
Really, it's only the second thing that's in doubt to me. In the rules, it's very clear that figures out of sight cannot be allocated damage, but I didn't see anything about out of range figures within a unit.
Thanks for whatever insights you might have!