The boys' team Atomic were the surprise losers, despite their Shiverrr my Timbers brand being a popular seller at Southend beach.
They only made £559.25 profit compared to the girls' team Kinetic, who picked up £708.03 thanks to a bolder strategy on prices.
Sugar confessed that the girls' team were lucky to survive after they had failed to create a proper business model for their Treat The Lips, Trim The Hips brand.
"Never mind Ben and Jerry this is like bloody Tom and Jerry with you lot!" blasted Sugar.
However, it was the girls who won a Zorbing treat from Sugar and the boys who were sent to the Losers' Café.
After a grilling in the boardroom, Project Manager Harry Hitchens opted to bring Mahamed and James McCullagh back into the boardroom.
A defiant McCullagh protested: "I was the man with the ideas, everything came from me. Nobody else had any ideas when it came to the branding at all.
"I came up with the concept and the name. I was the one that pulled in most of the attraction."
Mahamed squabbled with James over who came up with the pirate theme, prompting their Project Manager to complain: "Lord Sugar, this is turning into a long list of Mahamed's achievements and it is completely unfounded."
In his final summary, Sugar questioned James's economic credentials and Harry's control over the mobile team, but argued that Mahamed was the most to blame for their failure.
"It's difficult because you've come from thousands of applicants and you are the young prospects... but, Mahamed; you're fired," said Sugar.
Speaking afterwards, the 16-year-old A-Levels student said: "I'm really surprised at being fired but at the end of the day I'm still going to be a success and it will be Lord Sugar who regrets it."
The Young Apprentice continues on Monday nights at 9pm on BBC One.