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!

 they can make a hit the dirt reaction to gain a suppression marker and thus get soft cover.

Ah yes, they could hit the dirt…

I was more curious about the damage…can I kill members of a unit that are out of my range?

 i cant answer that off the top of my head yet, if i had my book with me i would give you a definate answer but im sure someone will answer soon.

Page 40:  The Attacking miniature need only have range to ONE visable miniature to participate in the attack. 

So as long as a shooter can reach atleast one mini his attacks will be applie to the unit (even the ones out of range)

My group had the same question last night and resolved it the same way.  Page 40 doesn't distinguish individual attacks being out of range so long as one model from the unit is in range. 

Think of it as spraying the area down with ammo I suppose. 

Yeah as long as they are visible to the figure firing they can have wounds allocated to them if I am reading it right.