Mail Merge the right app?

My CFO wants to add a pie graph to the bottom of a Word document taken from information in an Excel spread sheet. It is a letter to employees with an explanation of benefit costs. This information will be pulled from actual employee records imported to Excel. Automating the process would save tyoing the info near 500 times. It has been suggested that using mail merge to pull employee information to automate printing of the letters. Keeping in mind they want the pie graph updated with individual records. Is this possible?