Embedding the sheet as you have done is the way to go, as far as I know. As for layout, you can view page layout or print preview in Excel to see what will fit on a page. Viewing Excel on screen can otherwise be enormously deceptive.

I would also recommend setting a Print Area in Excel, to include only the part of the sheet you need. Select only this area and see how it falls on a page with the margins you have set for Word.