Don't forget that damage gets put on each guy in the cone noob. It does not hit 1 guy at at time.
Except the part where you're wrong and it does actually hit one guy at a time unless the squad keeps moving in and out of the MGs firecone...
And squad health is largely irrelevant. You don't transfer damage from a nearly dead guy to a healthy guy if the damage exceeds the remaining health in the guy.